Presentation by Terry Gardiner

Small Business Majority

Exchanges – Attracting Small

Businesses

Small Business LandscapeSmall Business Landscape

• 5.9 million employers with fewer than 100 employees employ 43 M nationallyo 80% (4.8 M) have fewer than 10 employeeso 54% (2.6 M) of employers with fewer than 10 employees

do not offer health coverage

• Most small businesses are very small and lack sophisticated HR departmentso Average employer in

Connecticut exchange has 8 employees

• Purchase health coverage through the exchange

• Purchase health coverage in the outside market

• Maintain a “grandfathered” health plan

• Do not offer health coverage

Employer Health Coverage ChoicesEmployer Health Coverage Choices

Will the exchange offer “value” – lower price;

better coverage; better services?

• Only half of employers belong to a business group

o IRS postcard helped makesmall business aware of the tax credit

Effective Outreach & EducationEffective Outreach & Education

• Trusted voices of peers – historical sources:

o brokers, business groups, business media

• Navigators in ACA can work for business

o Massachusetts Fishing Partnership Health Plan lowered uninsured rates from 43% to 13%

• Focus groups & other direct contact in process to ensure needs of small employers are met

Effective Outreach & EducationEffective Outreach & Education

• All necessary information for employer and employees to make decisions on coverage

• One application

• One premium payment & detailed accounting

• One source for enrollment changes

Single Point of Entry for EmployersSingle Point of Entry for Employers

• Qualification and calculation of the small business tax credit; state programs

• Coverage of out of state employees

• Coordinating coverage of Medicare-eligible employees

• Provides additional “HR” services such as Cobra administration, Section 125 service, HSA/FSA/HRA

Single Point of Entry for EmployersSingle Point of Entry for Employers

• Recognize different role of brokers (agents) for individual and small group markets

• Brokers will have ongoing role with small business selling other products

Role of Insurance BrokersRole of Insurance Brokers

• Initial launch and reception has proven critical for both employers and brokers

• Balancing broker compensation and services with competitive cost to employers will be challenging

• Model – Washington Health Insurance Partnership

o http://www.hip.hca.wa.gov

Role of Insurance BrokersRole of Insurance Brokers

• Defined benefits option – Utah & Montana

• Contributions by multiple employers – Utah

Other Measures to Attract BusinessOther Measures to Attract Business

• “Free choice” voucher

• Support of larger businesses

Frequently asked questions:http://smallbusinessmajority.org/hc-reform-faq

Small business healthcare reform summary:http://smallbusinessmajority.org/_docs/resources/

SBM_whats_in_it_for_small_biz.pdf

Health Reform Info for Small BusinessesHealth Reform Info for Small Businesses

For more information:

Terry GardinerNational Policy Director Email: tgardiner@smallbusinessmajority.org