Health Insurance Partnership – HB 2537
HB 2537 proposes revisions to a laws passed in 2007 to establish a new state Health Insurance Partnership (HIP) intended primarily to benefit small businesses and their employees.
IBA has significant concerns about the HIP primarily because it will cost millions of taxpayer dollars to create and likely offer hither cost health care plans to small businesses than are currently available. Offering hither cost health care plans to small businesses is a HUGE step backwards. It will increase costs in the following ways:
· It effectively turns small group health insurance plans into individual health insurance plans by allowing employees to select individual plans available through the HIP instead of having one plan for a small business. This will increase the cost of these plans from 10% to 20% as compared to the same plan on a group basis.
· It adds a COBRA like provision (employees who leave a company can continue their insurance after they leave the company) to plans available through the HIP what will also increase the cost of these plans as compared to existing group plans available to small businesses.
· The HIP will charge a fee for each employee insured through the HIP to pay the cost of operating the HIP.
.HB 2537 has passed the House of Representatives and is now being considered in the House of Senate.
You are urged to call and write your state Senator regarding HB 2537. Below is a sample letter.. You can identify your legislators and the phone numbers by going to www.ibaw.net/legfind or by calling 1-800-562-6000.
Sample Letter To Your Senator
Month xx, 2008
The Honorable ____________
Re: HB 2537 – Health Insurance Partnership
Dear Senator _________:
As a small business owner from ____city name_______, I urge you to oppose HB 2537, revising the Health Insurance Partnership health insurance program for small businesses for the following reasons:
· The HIP is very likely to increase costs of health insurance available to small businesses. Small businesses need legislation to reduce the cost of health care insurance, not increase the cost of health care insurance.
· It will cost millions of taxpayer dollars to set-up and implement this program that will benefit few small businesses. This is not a good way to spend shrinking state taxpayer revenues.
Please oppose HB 2537.
Please advise us of your position on HB 2537.
Thank you,
Sign your name
Print your name
Business name (optional)
Mailing address
City, WA Zip
Phone number (optional)