Health Reform Opens Up Options

Offering a competitive salary combined with health insurance benefits and other perks can prove to be a win-win combination in promoting improved work habits and reducing employee turnover, but the rising cost of small group insurance has left business owners frustrated and looking for options beyond traditional plans. During the past several years, both businesses and individuals have had to wade through the confusion of the Affordable Care Act. And businesses have sometimes gotten a bad rap when people assume they do not want to offer health benefits to their employees. In fact, most employers know that a benefits package – especially one that offers good health insurance – helps attract and retain quality employees. Unfortunately, we have found in recent polls of Greater San Fernando Valley Chamber members that many businesses are struggling to afford coverage for their employees. And instead of continuing health insurance benefits, some businesses say they are sending their employees to the Affordable Care Act exchanges to purchase their own coverage, while others are offering high-deductible plans. In order to help Valley business owners cope with these challenges, I’m presenting some additional options they may want to consider. Medical Clinic Membership Plans: On a recent trip to Utah, I had to make an unexpected trip to an urgent care clinic. This was not a regular urgent care facility. It was a medical group that provided affordable health care to people with or without insurance, offering acute, chronic, pediatric and preventative care. What stood out were the access plans they offered. For a small monthly membership fee, access plan members have unlimited access to the clinic for only $5 a visit. Employers can receive a discount on the monthly fee when purchasing access plans for their employees. It’s touted as a great benefit to those without insurance and a wonderful supplement to those who have high deducible plans. Health Insurance Purchasing Alliances: California’s health insurance exchange, Covered California, is essentially a purchasing alliance. One of its goals was to make it easier for individuals and small businesses to compare plans and buy health insurance on the private market. It was meant to provide the same advantages available to large employer groups by organizing the private insurance market, including a more stable risk pool and greater purchasing power. But the plans offered for businesses offer fewer benefits and many times cost more than plans bought outside the exchange. I believe another option is private purchasing pools that allow organizations such as chambers of commerce to form coalitions and offer insurance to their members. It is doable, but would require planning and long-term commitments from the organizations banding together to form coalitions, as well as proper administration of the coalitions to manage the premium payments and report necessary information to maintain the plan. Health Savings Accounts: In response to the increased cost of health insurance plans, many businesses have opted to offer high deductible health plans since they can be purchased for a much lower premium than traditional health plans. Employers can add a health savings account to help employees save money for many out-of-pocket medical expenses and by doing so offer employees a richer benefit package. A strong, dynamic business community benefits everyone in the San Fernando Valley, and as a chamber of commerce, we want to positively impact the quality of life in the region and make our business community a choice place to work. Let’s help businesses attract and retain excellent employees – after all, you can’t create a great company without great people. Nancy Hoffman Vanyek is chief executive at the Greater San Fernando Valley Chamber of Commerce in Van Nuys.