At an online seminar on Feb. 22 sponsored by The Commonwealth Fund, Small Business Majority Vice President Terry Gardiner discussed his recent Health Affairs article about how the Affordable Care Act's health insurance exchanges will make it easier for small employers to offer affordable health coverage.

1. 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
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

3. Employers 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
o 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. Thank You!
Contact us for more information.
Phone: (866) 597-7431
Email: national@smallbusinessmajority.org
Website: www.smallbusinessmajority.org