Terry Gardiner

Small Business Majority

February 22 , 2012

Features of Health Insurance Exchanges That Could Attract Small Business

Customers

Small Business Challenges for Exchanges

•  5.9 million employers with fewer than 100 employees employ 43 M nationally o  78% have fewer than 10 employees

o  58% with fewer than 50 employees do not offer health coverage

•  Most small businesses are very small and lack sophisticated human resources departments o  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

Employers 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 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 basis

o  Secure website access for broker

The 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 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

One 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 Wellness

Contact us for more information.

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

Website: www.smallbusinessmajority.org

Thank You!