California鈥檚 Small Business Insurance SHOP Opens, A Contrast To Feds
Just a few聽days after the federal government delayed online聽enrollment,聽California announced better news for small businesses who want to buy health insurance.
Businesses with up to 50 employees can begin signing up online for coverage through the state鈥檚 new聽marketplace, officials announced Monday.
Last week, the federal department of Health and Human Services could not聽get coverage online聽until November 2014 鈥 the latest bump on the road to implementing the Affordable Care Act.
California operates its own health insurance聽marketplace, however, so it isn鈥檛 affected by the federal government鈥檚 delay, said Peter Lee, executive director of the Covered California insurance exchange.
鈥淲e have planned for this day,鈥 he said during a press conference at the Los Angeles Area Chamber of Commerce. 鈥淲e鈥檝e tested for this day. And we are ready and open for business.鈥
The Small Business Health Options Program, , is separate from the more-familiar聽insurance exchanges for individuals or families.聽It’s voluntary and open year round.
On the Covered California , firms can compare health insurance plans and choose what to offer to employees. Their workers can then select from among different plans.聽Participating insurers include Kaiser Permanente, Blue Shield of California and Health Net, among others.
Many companies will be able to receive a tax credit, meaning the federal government will help cover their portion of the employee premiums. To be eligible for tax credits, businesses must have fewer than 25 full-time employees, pay employees less than $50,000 a year and cover at least half of the full-time employees鈥 premiums.
The state expects about 7,000 companies to enroll by the end of 2014. Businesses can also purchase Covered California insurance through licensed agents.
Covered California board member Paul Fearer said providing insurance keeps employees healthier and makes them less likely to miss work. It also enables businesses to recruit and retain talent and to operate on 鈥渆qual footing鈥 with larger companies, he said.
About half of the 650,000 small businesses in the state do not now provide coverage to their workers, 颅 mostly because of the cost, said John Arensmeyer, CEO of the Small Business Majority, a Los Angeles–based advocacy organization.
鈥淭his could not come at a better time for California鈥檚 small businesses,鈥 he said. 鈥淪mall businesses are going to have the same opportunities as big businesses to pool together to negotiate the best prices and the best quality and reduce administrative costs.鈥
Even with tax credits, however, some still won鈥檛 be able to take advantage of the program. 鈥淭hey will not be able to offer coverage tomorrow just as they can鈥檛 today,鈥 Lee said.
He said the small business program is not the 鈥渂e all, end all,鈥 but rather part of the broader state effort to make sure all Californians get coverage.
The helps support KHN’s coverage of California.
