HEALTH INSURANCE PLAN FOR SMALL BUSINESSES UNVEILED IN PINE BLUFF

A new health insurance plan for small businesses had the spotlight on it Monday, and after six months of operations, officials are hoping more businesses take advantage of the opportunity given by the state and federal government.

Despite the absence of Gov. Mike Beebe, who was diverted from Pine Bluff because of morning thunderstorms, the health insurance option ARHealthNet was unveiled at Quest Corp., a Pine Bluff company that has acted as one of its first clients.

The insurance plan originated from tobacco settlement money, and it focuses on businesses with more than two employees but less than 500. It also concentrates its efforts on families making less than $40,000 a year.

“We want to make sure that everyone knows that this is not a fully subsidized plan,” said John Selig, director of the Arkansas Department of Health and Human Services. “Obviously if the business can take care of its higher-end employees, the large number of workers who wouldn’t be able to afford coverage can get help.”

Selig pointed out that the benefits package, which does not include vision or dental, is a basic needs package that pays for 80 percent of the health coverage. The participating business would be required to take care of the remaining 20 percent, but according to Ron Powell of Quest Corp., it was a price the company was willing to pay.

“We were forced to drop our health insurance package,” Powell said. “Although there have been a few glitches early in this system, things are going very well right now, and we believe this is a very viable program.”

Although it does not cover major medical emergencies — Selig said he believed Medicaid would be able to be available at that point — ARHealthNet provides the basics for the average person needing health care. The package includes six physician visits a year, up to seven hospital stay days in a year, and two prescriptions a month.

Since launching at the beginning of the year, ARHealthNet is currently covering about 700 people. The limit for the first year will be 15,000, and over the course of the first five years, up to 50,000 people employed by small businesses could be covered. When fully implemented, Selig expected the state to pay about $2 million with the federal government paying about $10 million.

Based on information provided by ARHealthNet, employees who meet the income criteria established for financial assistance, the premium can range from $13-66 per month, with age as the primary determinant. The average cost per employee will be about $25-30 per month.

Selig pointed out that many of the uninsured are employed whose companies could not afford the premiums from earlier insurance packages. Another benefit, according to Selig, is that no pre-existing condition penalties are set.

Pine Bluff Mayor Carl Redus welcomed state officials as well as those from NovaSys Health, who is partnering with ARHealthNet.

“It is a great honor that Pine Bluff is where you wanted to show this great new package to the state,” Redus said. “Having this package will allow small business to find the proper skilled workers that they need, and they can now offer them proper health insurance benefits.”

source:www.pbcommercial.com