Oklahoma Governor Signs Bill Allowing Small Businesses To Form Insurance Pools

Oklahoma Gov. Frank Keating (R) on May 20 signed legislation (HB 2350) that will allow companies in the state with 100 or fewer employees to partner with other small businesses to purchase health insurance for employees and their families, the AP/Daily Oklahoman reports (AP/Daily Oklahoman, 5/21). The law requires the purchasing groups to include at least 200 employees and to offer at least two health plans. In addition, the groups must provide health coverage through state-licensed insurers and must file annual reports with the state insurance commissioner that "detail what products the groups will sell, the groups' marketing methods and a description of the groups' membership and disclosure requirements." The groups also must be not-for-profit organizations with a board of directors that includes five members from small businesses. Under the law, small business that participate in the groups must agree not to purchase health insurance for employees from "another source." According to supporters of the law, the groups will allow small businesses to purchase health insurance for employees at a reduced cost by "spreading risk among a larger number of people and reducing administrative costs" (Mecoy, Daily Oklahoman, 5/21).