SENATE COMMITTEE HEARS SUPPORT FOR HEALTH INSURANCE PLAN

FOR IMMEDIATE RELEASE                                                               Monday, March 10, 2008

Contact: Senator Kathleen Sgambati

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SENATE COMMITTEE HEARS SUPPORT FOR HEALTH INSURANCE PLAN

CONCORD – The Senate Commerce Committee heard testimony today in support of a new health insurance program for small businesses, called New Hampshire Health First.

The goal of Senate Bill 540, sponsored by Senator Kathleen Sgambati (D-Tilton) and supported by Governor John Lynch, is to provide a more affordable health insurance product for small businesses by requiring major insurance carriers in the state to offer a wellness plan for small business customers with up to 50 employees.

“New Hampshire Health First is made affordable, not by reducing the benefits, but by directly addressing the underlying drivers of health care spending,” Sgambati told the committee today.

The plan would provide many of the same innovations that large companies use to control costs, including a focus 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 calls for the state Department of Insurance to set up an advisory committee to develop the specifics of the plan to provide essential insurance coverage while promoting employee health. The target premium price would be 10 percent of the prior year’s median wage, currently about $262 per month.

Several small business representatives spoke in support of the legislation. “This is a great start,” said Jackie Cowell, who spoke on behalf of child care providers. “We’re looking for anything….If it saves 15 percent, it would be fabulous.”

Safeguards ensure that insurance companies would not be forced 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.

“We have accomplished a great deal on behalf of the citizens of New Hampshire in the area of health care. This has included making sure that our children have access to health insurance, extending benefits to dependents up to the age of 26 and providing a bridge in coverage for individuals who divorce,” said Senate President Sylvia Larsen (D-Concord), a co-sponsor. “This bill takes another important step in ensuring our residents have access to affordable healthcare.”