Presentation by Terry Gardiner Small Business Majority Exchanges – Attracting Small Businesses

Small Business Landscape 5.9 million employers with fewer than 100 employees employ 43 M nationally o 80% (4.8 M) have fewer than 10 employees o 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 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 Employer 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 make small business aware of the tax credit Effective 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 & 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 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 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 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 Role of Insurance Brokers

Defined benefits option – Utah & Montana Contributions by multiple employers – Utah Other Measures to Attract Business “Free choice” voucher Support of larger businesses

Frequently asked questions: Small business healthcare reform summary: biz.pdf Health Reform Info for Small Businesses For more information: Terry Gardiner National Policy Director