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

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

3. Employer’s Have Health Coverage Choices
Purchase health coverage through the exchange
Purchase health coverage in the outside market
Maintain a “grandfathered” health plan
Do not offer health coverage
Will the exchange offer “value” – lower price; better coverage; better services?

4. Communicating with Small Businesses is Complex
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

5. The Critical Role of Brokers
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
Secure website access for broker
The exchange and employee choice of health plans will be new for employer and employees - brokers have a key education role

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

7. One Stop Shopping: Services
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

8. Exchange Roles in Prevention and Wellness
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

9. Contact us for more information.
Thank You!
Questions?
Terry Gardiner
VP of Policy & Strategy
Small Business Majority
Contact us for more information.
Phone: (866)
Website: