March 13, 2012

REP. JOHNSON UNVEILS LEGISLATION
FOR REDUCING HEALTH CARE COSTS FOR SMALL BUSINESSES

State Representative Susan Johnson, Speaker of the House Christopher G. Donovan (D-Meriden), other lawmakers and small business owners unveiled legislation aimed at reducing health insurance costs for small businesses today in Hartford.

The legislation (HB 5487), based on the recommendations of the Speaker’s Working Group on Small Business Health Care, includes a measure that would allow small businesses to purchase employee health care coverage through the state employee health plan.

“As our small businesses struggle with double-digit premium spikes in their health insurance, I cannot think of a better time to provide them with options to help control health care costs,” said Rep. Johnson, who is a member of the working group.

Rep. Johnson said the working group has been studying and seeking to overcome the obstacles that small business owners face in seeking to purchase health insurance coverage for employees and their families.

“Connecticut needs to recognize the plight of small business and level the playing field by providing more health care options for small business owners,” said Kevin Galvin, owner of Connecticut Commercial Maintenance Inc. and co-founder and chairman of Small Business for a Healthy Connecticut, a statewide network of small business owners.

Dr. Carolyn Malon, a dentist and owner of Family Dental Care said it is difficult for small business owners to find affordable health care options. “As both a small business owner and a health care provider, I am very familiar with the challenges employers face and also can’t over-emphasize the importance of access to quality insurance that covers routine, preventative care.”

Malon recounted her own experience last year that demonstrated the need for affordable health care. In trying to keep their health insurance premiums down, she and her husband took a gamble on a policy with higher deductibles. “The decision backfired when our son was hospitalized for treatment of a blood-borne staph infection. Due in part to our high deductible, our out of pocket cost for his treatment amounted to more than $9,000,” she said. “A bill like this is beyond many citizens’ ability to pay.”

The legislation:

• Permits small employers with fewer than 50 employees, including self-employed individuals, to purchase employee health insurance through the state employee plan. This would allow them to take advantage of the state’s bargaining power to secure good health care at affordable prices.
• Eliminates insurers’ ability to adjust small group premiums based on age, gender, occupation or group size.
• Requires insurers to rate and offer policies to associations. This would enable small businesses to band together with their professional associations and receive a premium quote based on the health experience of the entire group.
• Requires insurers to report on whether employers’ current insurance plans meet the minimum standards that will be in place in 2014.

Susan Johnson is serving her second term representing Connecticut’s 49th General Assembly District in Windham. She is Vice Chair of the state legislature’s Insurance & Real Estate Committee.