Insure Montana Small Business Health Insurance Program

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Insure Montana Small Business Health Insurance
Program

• The Small Business Health Care Affordability Act,
  was requested by State Auditor John Morrison and
  Governor Brian Schweitzer and was signed into
  law in May of 2005.
• The program is designed to give tax credits to
  small businesses already offering health coverage
  and to provide monthly assistance and membership
  in a purchasing pool to businesses that have not
  offered health insurance in the past.

About Montanas Population

• Montanas uninsured rate ranks among the worst in
  the nation.
• One in five Montanans or about 170,000 residents
  have no health insurance.
• 53 of Montanas uninsured population works for a
  small business.
• 80 of small firms not offering insurance would
  do so if they could afford the premiums.

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Insure Montana Purchasing Pool and Tax Credits

• Eligibility Requirements
• Businesses with 2-9 full time employees where no
  employee earns more than 75,000 (excluding the
  owner) meet the initial criteria.
• In order to be eligible for the Purchasing Pool,
  a business must not have offered group health
  insurance in the past 24 months.
• Purchasing Pool participants receive monthly
  employer incentive payments and employee
  assistance payments
• In order to be eligible for a Tax Credit, a
  business must currently pay some or all of the
  cost of group health insurance for their
  employees. The program also provides additional
  Tax Credits when employers pay insurance premiums
  for the employees spouse or their dependents.

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Insure Montana Implementation

• Purchasing Pool
• Coverage began January 1, 2006
• 554 previously uninsured businesses enrolled
• 3,715 lives covered
• Average monthly assistance amount 158 (per
  employee)
• Average monthly incentive amount 203 (per
  employer)
• Funding available for approximately 675
  businesses

• Tax Credits
• Credit effective January 1, 2006
• 706 businesses enrolled
• 3,500 lives covered
• Average yearly tax credit 3,283

Insure Montana Funding

• Funded by 1 per pack cigarette tax passed by
  voters.
• Insure Montana was allocated 13 million dollars
  for the first two years. (FY 2006, 2007)
• For the upcoming biennium 20 million dollars has
  been allocated (FY 2008, 2009)

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Benefits of Pool Coverage

• Coverage available through Blue Cross Blue Shield
  of Montana
• Employer premium incentive payments and employee
  premium assistance payments.
• Two comprehensive plans offered

Innovative Expansion of Insure Montana

• Included in 2007 Legislation
• 1. Addition of wellness benefit.
• 2. Possibility of changing group size to include
  sole proprietors and groups with up to 15 full
  time employees.
• 3. Stop loss (reinsurance) program with a
  specific corridor of risk.

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Additional Insure Montana Information

• www.insuremontana.org
• Lisa Crowley, Program Director [phone]