Organizing Committee pools can reduce health insurance costs for small businesses
The legislation, the state Department of management of insurance pools for small employers and non-profit organizations, which was in the state awaits final approval by the Senate on May 14 that the legislature has begun a two-day extension.
Language of a bill sponsored by Anchorage Republican Czech standard Rokeberg, House Bill 315, was a Senate adopted the bill with a similar theme, insurance grouping of airlines. Rokeberg proposal would make greater pool, which can help reduce the cost of insurance benefit employers, he said.
Rokeberg said an increase in the cost of health insurance still rose by 13 percent to 15 percent nationally during the past year.
Blue Cross, which has 52 percent market health insurance in Alaska, has just increased by 20 per cent, Rokeberg said on the floor of the house.
“During the skyrocketing costs of 1990 were reduced by health insurance organizations, preferred provider networks and other innovations, we still see a sharp increase in the cost of health insurance” , Rokeberg said.
“This law is an effort to bring people together so they can get health insurance they need at an affordable price.”
It is estimated that only 35 percent of Alaska small businesses offer insurance, compared to the national average of 60 per cent, Rokeberg said.
Bob Lohr, head of the state Division of Insurance, said the recent increase in premiums because of various factors, including health care costs, rising after a further period of plateau.
Other factors are increasing the use of medical services of an aging population and the fact that investment funds disease is not already done so, as in previous years, as good returns on financial markets has contributed premiums, “said ear.
He said Rokeberg proposal was particularly important for the state of non-profit organizations, which provide for increases in premiums by 40 percent to 200 percent.
Rokeberg said the State Department of Administration would help form the pool and then fall to a private company, to more than one insurance company, they operate. The state itself is not in the insurance business, he said.
The pool would also be small businesses with two to 50 employees, Nonprofits and special service organizations such as individual companies, custody of children, promotion of care or housing.
“This law will not solve all problems and many perhaps not yet able to provide assurances,” Rokeberg said.
“But I hope that the combination of a large group of individuals, the risks may be more humane, and premiums lower, so that these people must be decisions and a stable source of insurance coverage” , “He said.
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