Later this year, a new insurance plan, Chamber Blue, will be available to members of the Hutchinson/Reno County Chamber of Commerce. Chamber Blue is an association health plan, which allows smaller companies to access insurance prices from large plans.
The chamber plans to roll out the state initiative for businesses with two or more employees to chamber members in the fall.
Blue Cross Blue Shield of Kansas has partnered with more than 30 Kansas Chambers of Commerce and created an insurance plan for small businesses to use.
“Think of a large company that can offer insurance to their employees — they have a large pool of employees, which can potentially lower costs,” said Rebecca Witte, public relations specialist for Blue Cross Blue Shield of Kansas. “We’re trying to create the same scenario for small businesses across the state.”
Access to a competitive insurance plan can attract new employees to small businesses in Kansas and Reno County.
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Why health insurance is important for small businesses
Teresa Wagner, owner of Woodwork Manufacturing and Supply in Hutchinson, employs nearly 40 people at her business and uses Blue Cross Blue Shield.
Although he doesn’t plan to switch to Chamber Blue, he understands its importance when talking to other small businesses.
“It’s a very important thing,” Wagner said. “Providing insurance for your family and going to the doctor and only having a $24 copay (if that’s the rate Chamber Blue decides on), I mean, that’s huge.”
Wagner said the insurance is a benefit that helps attract employees.
“(Insurance) is one of the things that everyone asks us when we sign up; one of the main questions is ‘what are the benefits?’ — so that’s a huge draw for qualified employees,” Wagner said.
Large group pricing typically applies to businesses with 50 or more employees, so Debra Teufel, the chamber’s president and CEO, said small businesses don’t have as much access to competitive insurance.
“We hope this will help provide a new rate structure for small businesses that have not been able to take advantage of large group pricing in the past,” said Debra Teufel, president and CEO of the Hutchinson County Chamber/ Reindeer.
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How the Kansas plan will be implemented
Employers often offer insurance to full-time employees, but with Chamber Blue, Witte said they plan to give any employee with 30 or more hours per workweek the opportunity to sign up for insurance.
An association health plan allows smaller businesses, freelancers, or the self-employed to group together in a shared health insurance plan to access large group insurance rates.
The plan contemplates three stages. First, in August of this year, the chamber will send an interest survey to its members that is mandatory to complete in order to participate in the Blue Chamber.
After the survey, the chamber plans to announce rates based on the survey sent to members in September.
Finally, Blue Cross Blue Shield and the chamber will begin enrollment of interested chamber members in October.
“This is the first year we’ve been able to offer this benefit and we’re excited to make it available to our members,” said Teufel.