Binghamton Press & Sun-Bulletin Examines New York State Small Businesses Trying to Provide Health Insurance

The Binghamton Press & Sun-Bulletin on Oct. 21 examined the ways small businesses in Broome County, N.Y., are attempting to provide health insurance to their employees. A Center for Studying Health System Change report released last week found that small businesses -- those with 50 or fewer employees -- experienced increases of 14.5% in health insurance premiums last year, after 9.5% and 7.8% increases in 2000 and 1999, respectively. "Small businesses are extremely challenged. And they don't have many options," Kevin McGurgan, Southern Tier regional president of Blue Cross Blue Shield of Central New York, said. According to the Press & Sun-Bulletin, many New York state small business owners would like the state to provide premium assistance. While the state has offered a subsidized health insurance program for small businesses since 2001 -- under which premiums on average are approximately half of what individual consumers would pay -- many employers still say the cost of providing insurance is still prohibitive, the Press & Sun-Bulletin reports. Many employers are looking for "creative ways" to offer employee health insurance without passing on higher costs to employees or customers. "I see small businesses either reducing the amount they'll pay or choosing high deductible plans or opting for medical spending accounts. That way, at least they have catastrophic coverage even though they may not have the wellness visits and the prescription program may not be as good," Lisa Mayers, community relations director for The Broome Chamber, said. Mayers said that in response to high health insurance costs for small businesses in Broome County, The Broom Chamber has begun offering high-deductible health insurance coverage with premiums of $98.89 per month for an individual to $257.37 per month for a family, both with a $5,000 deductible (Atkinson, Binghamton Press & Sun-Bulletin, 10/21).