FOR IMMEDIATE RELEASE                                                           Tuesday, April 29, 2008

Contact: Senator Kathleen Sgambati

(603) 271-3074

SENATOR PRAISES HOUSE COMMITTEE FOR SUPPORTING HEALTH PLAN

CONCORD – Senator Kathleen Sgambati (D-Tilton) congratulated the House Commerce Committee today for recommending passage of legislation designed to provide a more affordable alternative for small business health insurance.

The House Commerce Committee voted 15-2 to recommend passage of Senate Bill 540, known as New Hampshire HealthFirst. The legislation already has passed in the Senate 21-3.

“This bill creates cost saving opportunities for small businesses and their employees in the area of health insurance. The timing is important given all the other financial challenges they currently face. These businesses are the heart of New Hampshire’s economy and I am pleased that the House Commerce Committee has joined the Senate in supporting them,” Sgambati said.

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.

The legislation calls for the state Department of Insurance to set up a special advisory committee that includes small business owners. The committee would design the wellness plan with a target premium price of 10 percent of the prior year’s median wage, currently about $262 per month.

The House Commerce Committee recommended some changes to the legislation – adding a requirement that an actuary assess whether the wellness plan could be offered at the target price before any insurance companies are asked to provide the product. Insurance companies remain free to use their own actuaries to set a premium price.