Terry Gardiner Small Business Majority February 22, 2012 Features of Health Insurance Exchanges That Could Attract Small Business Customers

Small Business Challenges for Exchanges 5.9 million employers with fewer than 100 employees employ 43 M nationally o 78% have fewer than 10 employees o 58% with fewer than 50 employees do not offer health coverage Most small businesses are very small and lack sophisticated human resources departments o Average employer in Connecticut exchange has 8 employees

Purchase health coverage through the exchange Purchase health coverage in the outside market Maintain a grandfathered health plan Do not offer health coverage Employers Have Health Coverage Choices Will the exchange offervalue – lower price; better coverage; better services?

Only half of employers belong to a business group Trusted Advisors – their brokers, accountants, peers Communication Channels – business press, business groups, trade groups Diversity of Businesses – in the office, in the field, languages Communicating with Small Businesses is Complex

Brokers will have ongoing role with small business Initial launch and reception has proven critical for both employers and brokers Successful models train and support brokers on an ongoing basis o Secure website access for broker The Critical Role of Brokers The exchange and employee choice of health plans will be new for employer and employees - brokers have a key education role

All necessary information for employer and employees to make decisions on coverage One application One premium payment & detailed accounting One source for enrollment changes Single Point of Entry for Employers

Qualification and calculation of the small business tax credit; state programs Coverage of out-of-state employees Coordinating coverage of Medicare-eligible employees Provides additional HR services such as COBRA administration, Section 125 service, HSA/FSA/HRA One Stop Shopping: Services

Provide workplace wellness through the program components of the health plans offered by insurers. Directly provide workplace wellness services and programs that have a positive track record with other SHOP exchanges. Educate and provide tools for insurance brokers about the business case for small employers. Collaborate with insurers that are innovating workplace wellness programs Establish a workplace wellness advisory group Exchange Roles in Prevention and Wellness

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