FOR IMMEDIATE RELEASE                                                           Thursday, April 10, 2008

Contact: Senator Kathleen Sgambati

(603) 271-3074

SENATOR PRESENTS HEALTH PLAN FOR SMALL BUSINESSES TO THE HOUSE

CONCORD – Senator Kathleen Sgambati (D-Tilton) testified before the House Commerce Committee today in support of HealthFirst, legislation to provide new and cheaper alternatives for small business health insurance.

Senate Bill 540 passed 21-3 in the Senate in March and has the support of Governor John Lynch, who also testified today.

“This plan makes coverage affordable, not by diluting benefits, but by addressing the underlying drivers of health care spending,” said Sgambati, the prime sponsor.

The legislation would require major insurance carriers in the state to offer a standard wellness plan for small businesses with up to 50 employees. Premium costs would be controlled by focusing on prevention, managing chronic conditions and promoting best practices. Similar legislation in Rhode Island produced a savings of more than 15 percent for small businesses compared to other forms of coverage available in the market.

“Senate Bill 540 is intended to address the rising costs of health insurance that more and more small businesses are struggling to pay,” said Senate President Sylvia Larsen (D-Concord) who also testified in support of the bill today.

“Your constituents need something better than what’s available to them now,” agreed state Insurance Commissioner Roger Sevigny. “I believe there’s a way to do it.”

The legislation would require the state Department of Insurance to set up an advisory committee to develop the specifics of the plan, with incentives to promote efficiency, health and wellness. The target premium price would be 10 percent of the prior year’s median wage, currently about $262 per month.

Safeguards protect insurance companies from having to absorb a loss if the premium price is not adequate to cover their costs. The advisory committee would rework the plan if no insurance carriers can meet the target price. In addition, the legislation calls for plan requirements to be reviewed and revised every three years.