Small business health insurance plan gets Senate OK
21 03 08 - 11:10
By TOM FAHEY
State House Bureau Chief
12 hours, 3 minutes ago
CONCORD - A plan to cut the cost of health insurance for small businesses advanced yesterday on a 21-3 vote in the state Senate.
Gov. John Lynch has made passage of the HealthFirst plan in Senate Bill 540 a priority this year. The plan emphasizes wellness and disease prevention, chronic disease management and the use of proven best medical practices to reduce the costs of health coverage.
The bill would require any health insurer that covers 1,000 members now to offer the plan. It would be designed by a committee that includes the commissioner of insurance, small-business representatives, lawmakers and consumers.
The idea behind the plan is to allow small companies to take advantage of the same health incentive plans that large employers rely on to cut costs.
The bill would set a limit on the cost of the new plan at 10 percent of the state's median wage.
Sen. Kathy Sgambati, D-Tilton, said the state needs to act and has a chance to create a model plan.
"None of our business community can continue to absorb the sticker shock they get at policy renewal time," she said.
Sen. Ted Gatsas, R-Manchester, opposed the bill. He argued that it sets an artificially low price cap on the plan that works out to $262 a month.
"That's not going to exist. That's not going to happen," he said. "It's clear that we're sending a false impression to employers."
Health insurers would either be unable to meet the price or would pass losses they take on the coverage to larger customers, raising rates for businesses with more than 50 workers, Gatsas said.
Lynch thanked the Senate for moving the bill to the House.
"This bill is about helping small businesses better afford health insurance for their workers," he said. "With New Hampshire HealthFirst, we are working to bring health care innovations like wellness, prevention and technology to small businesses so they can save costs and keep providing insurance to their workers."