Small businesses in the state may soon have access to discounted health plans with comprehensive coverage.
The governor is promoting a bill that would require insurers to provide such plans for an average monthly premium of $262 dollars.
Enrollees would have to do their part by following some rules meant to improve their health and lower medical costs overall.
As NHPR's Dianne Finch reports, a similar plan is already up and running in Rhode Island - with mixed reviews.
Governor Lynch announced the plan in his state of the State address in January.
Governor Lynch: “I ask you to join with me to create New Hampshire HealthFirst which would require insurance companies to offer a wellness insurance plan to small businesses.”
Small businesses are struggling to provide affordable health plans to their staff – and some have had to drop coverage all together.
But if the Healthfirst bill passes, Lynch said, insurers would have to offer more reasonable rates to firms with 50 or fewer employees.
Governor Lynch: “Rhode Island passed similar legislation last year. It reports a savings to small businesses a savings of more than 15% when compared to similar coverage available in the market.”
The governor has been meeting with small businesses around the state to get their thoughts on the legislation.
AMBI: Print shop chatter
Late last month, he visited Print Solutions in Concord – a family owned shop with seven employees.
AMBI: Print shop chatter
The shop’s owner, Kevin Boyarsky, said he applauds any plan that would save his company money – and believes that the Governor’s would.
But he worries that the cost may still be out of reach for his employees.
BOYARSKY: “Even the $262 dollars may be a little bit too expensive. Plus they're not mandated to take it.....I have one employee who’s resisted going on insurance because he just doesn’t want that coming out of his check every week.”
A print operator at Boyarsky’s firm, Jim Coleman, produces business cards.
AMBI: Machine printing cards
Coleman says that he couldn’t even consider paying more than few hundred dollars in monthly premiums to cover his family.
Coleman: “Oh ya I mean if I had to buy it here and it was $100 dollars a week or whatever I’d be asking for a raise and if not I’d be looking for another job where they would supply it.”
The New Hampshire Healthfirst legislation would cap the average premium at 10% of the state’s median wage.
That’s where the $262 dollar figure comes from.
But that would apply just to single subscribers.
In Rhode Island, which has a similar program insurers are charging at least two and a half times that rate for families.
And in Rhode Island, not every single subscriber gets the average rate.
Some people pay less than the average, and others pay more.
64-year-old Ray Stewart runs an auto body shop in Coventry, Rhode Island.
Stewart: “… this new plan supposedly come out and was supposed to be the best thing since sliced bread…”
But, he said, the premium turned out to be much higher than he expected it to be.
STEWART: “…when they advertised this in the state of Rhode Island, which did catch my eye I have to tell you that, is they said you can get it for $300 or $400 dollars. Well that would be the very best conditions now if I was in a certain age bracket. I think when they came up with this formula they forget that people got older every year they have birthdays.”
Stewart pays $692 dollars a month and has a $750 dollar deductible.
He says he’s following the plan’s rules. He’s lost weight. He doesn’t smoke. And he says that he doesn’t have any major illness.
Linda Glew works for an insurance broker in Rhode Island.
She says that the new policies are more popular with young and healthy people who own or work for small companies.
Glew: “..like I had a young famly that enrolled they have a small baby they’re in tip top shape, tip top health, no health issues, nobody smokes and body mass index is perfect. So for them it was cost savings and they don’t have to worry about attending any programs because they don’t need anything they just have to worry about completing the forms and doing the followup.”
And says Glew, those forms can be a challenge.
First, Glew says that to enroll in the Rhode Island plan, people must pledge to exercise and see their primary doctor regularly.
If necessary they also must enroll in weight loss, smoking cessation or other programs to help them manage existing health problems.
But if enrollees don’t comply with the rules, they can be dropped or bumped to a more expensive plan the following year.
Glew said that many people were happy to follow the rules, but ended up in higher cost plans anyway.
That’s because they had problems filling out an 18-page questionaire filled with questions like….
GLEW: “…basic health any family history when did you have your last mammography..or what level do you think your stress is during the day or do you buckle up when you drive use your seatbelt all the time how far do you travel to work that is the form that has to be completed and submitted with the application”
If they didn’t cross every “t” and dot every “I”, Blue Cross automatically kicked them into a more expensive plan.
Matthew Stark is the policy chief at Rhode Island’s state health insurance commission.
He says that the bumping mechanism has been an issue.
Stark: “Yes that was a policy yes it had a detrimental affect on take up for the product but it is important to know that that policy has changed and we’re right now working with Blue Cross on how to publish that change so that the community is aware of it.”
In Rhode Island, 500 people from 130 companies have enrolled since the plan hit the market last fall.
Stark said Rhode Island is looking at legislation that would stop insurers from using health status when setting rates for small employers.
And they’re talking with insurers about ways to simplify the plans.
The New Hampshire legislation would require all insurers who serve 1,000 or more people to offer the plans.
Spokesman Chris Dugan of Anthem Blue Cross says he applauds the bill’s intention.
And he says his company is pleased that consumers would be encouraged to take better care of themselves.
But he has other concerns.
Dugan: “We sincerely would like to be able to be a part of that dialogue to have a seat at the table…and also perhaps to have providers and brokers at the table the team approach really can produce the best outcome when you all work together.”
New Hampshire Insurance Commissioner, Roger Sevigny, says that insurers and providers will be called upon for advice.
But, he says that small employers, legislators and his department will sit on the advisory committee.
A House committee hearing on the legislation is scheduled for April 10th - and it’s expected to reach the floor for a vote soon after.
The bill already passed in the senate by a wide margin.
For NHPR News, I’m Dianne Finch
