CBIA promotes private health exchange
As more employers seek employee health coverage plans, officials at the Connecticut Business and Industry Association are seeing an uptick in companies purchasing health plans through CBIA”™s private insurance exchange.
When the state first announced the formation of its own exchange, Access Health CT, under the Affordable Care Act, the idea of an insurance marketplace was new to many. But to CBIA and the thousands of employers that use its exchange, the idea was tried and true.
CBIA launched its insurance exchange, Health Connections, in 1995 and has since offered employers with fewer than 100 employees a variety of health care plans from which to choose.
“We”™ve been doing this for almost 20 years, bringing choice, simplicity and quality products to small businesses,” said Philip Vogel, senior vice president of CBIA’s Service Corp.
A small business owner can now purchase coverage through Access Health CT and apply for a federal subsidy to offset the cost. However, Vogel said he feels the state”™s exchange is more geared to individuals who are either uninsured or low-income, rather than focused on small businesses. In that arena, he said, CBIA Health Connections shines.
The CBIA exchange offers a total 24 health plan designs offered through Aetna Inc., ConnectiCare Inc. and Oxford Health Plans L.L.C. The exchange handles all the administrative efforts for HRA and COBRA services and issues only one bill and phone number for service.
Additionally, CBIA offers a free wellness program to increase employees”™ health and productivity.
“Small businesses need a place to go that can offer flexible plans and understands competition and the private sector,” Vogel said. “Unfortunately I think (the state exchange) is challenged from a systems and customer service standpoint.”
So far the state exchange has initiated only 106 small business plans, falling below its enrollment goals.
Vogel said private health exchanges were a key discussion point during the 1990s health reform under the Clinton administration. The effort tanked nationally, but it spurred CBIA to launch its own exchange.
“We looked at it and said it”™s a business worth exploring,” he said. “It”™s something that the private sector should be doing.”
With the roll out of new regulations under the Affordable Care Act, Vogel said the CBIA exchange underwent a massive restructuring in redesigning its plans and filings with the Connecticut Insurance Department. But with the relaunch, Vogel said plan retention rates have improved dramatically and demand for new plans has remained strong.
“It was an exorbitant effort,” Vogel said. “All the plans we had had to be changed to comply with the ACA ”¦ It”™s a brand new sweep. It”™s been a challenging time. But it”™s all working out.”
Moving forward, Vogel also said he expects more employers to use CBIA”™s exchange, especially as the federal employer mandate comes online. By 2015, employers with more than 50 full-time employees will be required to provide employee health insurance or will face a penalty of up to $3,000 per person.
“We try to make everything as simple as possible for small businesses already overwhelmed with competing on a global and regional scale,” Vogel said. “It”™s one simple package, place to call and go.”