Kaiser Daily Health Policy Report Highlights Recent News About Small-Business Health Coverage

Summaries of recent news about two efforts to contain health care costs for small businesses and their employees appear below.

• AARP: AARP President Bill Novelli on Monday at the National Federation of Independent Business conference in Washington, D.C., said his organization supports legislation that would allow small businesses and individuals to band together across state lines to purchase health insurance, the Washington Post's "Small Business" blog reports (McLoone [1], "Small Business," Washington Post, 6/9). The bill (S 2795), co-sponsored by Sens. Richard Durbin (D-Ill.) and Olympia Snowe (R-Maine), also would provide tax credits for small businesses to offset contributions to employee premiums and would prohibit insurers from using health status ratings, which could increase rates for a business if a single worker becomes ill. Snowe said, "This hybrid legislation transcends partisan politics and puts the focus where it belongs -- on providing health insurance options that are more affordable and accessible for small businesses and their employees" (CQ HealthBeat, 6/9). Novelli on Monday said that it is important to make progress on the bill this year to lay the groundwork for a new president and Congress next year (McLoone [1], "Small Business," Washington Post, 6/9). A bipartisan group of House members is expected to introduce companion legislation on Tuesday (CQ HealthBeat, 6/9).
  
  
• eHealth: Online insurance brokerage firm eHealth and NFIB on Monday announced a customized technology tool that will allow small-business owners to make contributions to the health savings accounts of workers who purchase private health insurance, Dow Jones reports. Employees will be able to choose from policies offered by about 175 insurers through eHealth. Workers also will be able to manage expenses online and use debit cards linked to HSAs to pay for medical costs. A pilot program began in December 2007 for workers in six states, and the program is now being expanded in more than 35 states and Washington, D.C. (Knight, Dow Jones, 6/9). EHealth Senior Vice President Sam Gibbs said the company noticed that over the last 15 months, small-business owners were purchasing private coverage and were no longer purchasing group insurance plans. He said," Many of these businesses ... were really starting to feel the inflation of small group products" (McLoone [2], "Small Business," Washington Post, 6/9).