Smart Benefits: RI Exchange Leads Way With Focus On Small Business
Monday, September 16, 2013
The soon-to-be-open state exchanges, supported by national healthcare reform legislation, are intended to help individuals get access to appropriate and affordable healthcare. Whether the exchanges extend coverage to small businesses is up to each exchange, and Rhode Island’s decision was yes.
"HealthSource RI, Rhode Island's state exchange, is unique because it considers servicing small businesses one if its core values," said Christine Ferguson, Healthsource's Director, at a local conference Thursday sponsored by Cornerstone Group, which was attended by more than 175 employers.
The headline speaker, Ferguson emphasized that, since Rhode Island is built on small businesses, it was important to her to that HealhSource provide new and affordable options for these employers. She added that HealthSource is leading nationally with its attention in this area. How?
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTExpanding Small Business Selections
HealthSource RI will offer a SHOP marketplace in which small businesses (with 50 or fewer full-time equivalent employees) can purchase health insurance. The SHOP will offer two models of coverage for employers renewing coverage starting January 1, 2014.
Full Service Model
In this model, an employer determines a defined contribution, or set amount of dollars earmarked to pay for health coverage, and sets the employer contribution based on the reference plan at the selected cost level. Employees can choose the reference plan, or any of 15 other plans offered through the SHOP, by paying the difference in cost based on the employee's age and plan selected. This full-service model greatly expands selection for employees compared to the private market where insurers still only allow small employers to offer up to two plans.
Single Plan Model
If employers prefer, they may select one single plan. In this model, employers can still define a contribution and have employees pay the difference going forward.
Driving Transparency
Ferguson also stressed transparency as a key differentiator of the Rhode Island exchange. "Many other exchanges are focused on sharing only the employee share of the costs,” said Ferguson. “HealthSource is providing the whole picture. Individuals and employees will be able to see the true cost of the plan.
“Individuals will see the subsidy amount versus how much they are responsible for. And for small businesses, employees will see the employee share, and their share based on which plan they purchase,” Ferguson continued. "The only way to help people understand the true costs of health care, and to help them with their decision making, is to arm them with the facts."
Providing Support
Ferguson emphasized that employers should continue to work through their brokers and benefit advisors for assistance in understanding the new SHOP options and how the different selections would impact them and their employees. And if additional help is needed, either for brokers or for employees, Ferguson said HealthSource will be there to meet them.
Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.
Related Articles
- Smart Benefits: Employers Are Okay With Sleeping On The Job
- Smart Benefits: How 3 New RI Laws Will Affect Employers
- Smart Benefits: RI Among Worst States for Competitive Healthcare
- Smart Benefits: Employers Are Tangled Up in Healthcare Reform
- Smart Benefits: Insurers File 1st Round of Rate Increase Requests
- Smart Benefits: RI Cracks Down on Health Insurer Rating Practices
- Smart Benefits: Enrollment in Health Exchanges Not So Simple
- Smart Benefits: MA’s Tax Breaks For Wellness Sets a Good Example
- Smart Benefits: Small Employers—RI Exchange Or Private Plan?
- Smart Benefits: Expect Double-Digit Health Insurance Hikes in 2014
- Smart Benefits: More Rate Hikes For 2014
- Smart Benefits: Switching to HSAs May Reduce Healthcare Spending
- Smart Benefits: 5 Health Benefit Cost-Cutting Trends To Watch In 2014
- Smart Benefits: Employers/Insurers To Foot Healthcare Reform Fees
- Smart Benefits: NE Health Exchanges—Who’s Ahead, Who’s Behind?
- Smart Benefits: Taxpayers Could Get Stung By Local Healthcare Cost
- Smart Benefits: HSA Contribution Limits Rise For 2014
- Smart Benefits: Gay Marriage Ruling + Employer Compliance
- Smart Benefits: New Healthcare Reform Fee Means Higher Premiums
- Smart Benefits: Be Prepared For Fall Open Enrollment Changes
- Smart Benefits: Healthcare Reform Delays Hit Consumers Hard
- Smart Benefits: Obamacare Delay Helps Employers Prepare
- Smart Benefits: Employer Exchange Model Notice Released Early
- Smart Benefits: Healthcare Reform—Big Rewards for Wellness in ‘14
- Smart Benefits: Obamacare Mandates: What Is And Isn’t Delayed