Terry Gardiner

Small Business Majority

February 22 , 2012

Features of Health Insurance Exchanges That Could Attract Small

Business Customers

Small Business Challenges for ExchangesSmall Business Challenges for Exchanges

• 5.9 million employers with fewer than 100 employees employ 43 M nationallyo 78% have fewer than 10 employeeso 58% with fewer than 50 employees do not offer health

coverage

• Most small businesses are very small and lack sophisticated human resources 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’s Have Health Coverage Choices

Employer’s Have Health Coverage Choices

Will the exchange offer “value” – lower price;

better coverage; better services?

• Only half of employers belong to a business group

• Trusted Advisors – their brokers, accountants, peers

• Communication Channels – business press, business groups, trade groups

• Diversity of Businesses – in the office, in the field, languages

Communicating with Small Businesses is ComplexCommunicating with Small Businesses is Complex

• Brokers will have ongoing role with small business

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

• Successful models train and support brokers on an ongoing basiso Secure website access

for broker

The Critical Role of BrokersThe Critical Role of Brokers

• The exchange and employee choice of health plans will be new for employer and employees - brokers have a key education role

• 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-stateemployees

• Coordinating coverage of Medicare-eligible employees

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

One Stop Shopping: ServicesOne Stop Shopping: Services

• Provide workplace wellness through the program components of the health plans offered by insurers.

• Directly provide workplace wellness services and programs that have a positive track record with other SHOP exchanges.

• Educate and provide tools for insurance brokers about the business case for small employers.

• Collaborate with insurers that are innovating workplace wellness programs

• Establish a workplace wellness advisory group

Exchange Roles in Prevention and WellnessExchange Roles in Prevention and Wellness

Questions?Questions?Terry Gardiner

VP of Policy & StrategySmall Business Majority

Contact us for more information.

Phone: (866) 597-7431 Email: national@smallbusinessmajority.org

Website: www.smallbusinessmajority.org

Contact us for more information.

Phone: (866) 597-7431 Email: national@smallbusinessmajority.org

Website: www.smallbusinessmajority.org

Thank You!Thank You!