The Affordable Care Act, passed in 2010 and is being rolled out in stages. Many reforms, most notably the individual health insurance exchanges, won’t go into effect until 2014, but some small-business owners are experiencing sticker shock already and blame the new law for the rising health insurance rates they’ve seen over the past 2 years.

Supporters of insurance exchanges argue that they can be a game-changer for small-business owners in particular. Insurance exchanges can offer new options for covering employees at competitive and more realistic prices, they argue. Currently, small-business owners typically pay much higher premiums than large employers because they don’t have a large enough pool to spread out risk and reduce the cost of coverage.

Here are a few options small businesses can consider as they wait for healthcare reforms to kick in:

1. FIND OUT IF YOU QUALIFY FOR A SMALL-BUSINESS TAX CREDIT.

Businesses with fewer than 25 full-time employees paying staffers an average annual salary of less than $50,000 may now be eligible for tax credits of up to 35% of the cost of their premiums. Employers need to pay more than half the premium to qualify. It is difficult for many employers in a higher-wage market such as Chicago to qualify, but for those smaller businesses that fit the narrow definition, pursuing the credit may be well worth the effort. Tax experts estimate only half of small businesses even realize there’s a health care tax credit that they could qualify for.

2. ANALYZE WHETHER YOUR BUSINESS SHOULD CONTINUE OFFERING COVERAGE UNDER HEALTH REFORM.

Under the new law, employers with staffs of 50 or more could face penalties of $2,000 per employee if they don’t provide insurance. Some business owners say their coverage already exceeds that, so a penalty could be a more affordable option. If you run a mid-sized business, start analyzing whether it would make sense to continue offering coverage or to pay the penalty and send employees to a state exchange.

Illinois is among 17 states that have made significant progress toward developing health insurance exchanges, the new markets on which individuals seeking insurance will be able to purchase it that begin January 1, 2014, according to the AP analysis. Thirteen states have already adopted a plan, but are home to only 25% of the uninsured. The 20 states lagging behind account for the biggest share of the uninsured, 42 percent.

3. ADOPT A WELLNESS STRATEGY.

While a wellness incentive plan for employees may not pay big dividends right away, the plans help employers qualify for significant discounts on overall coverage. By providing employees with tools, resources, and incentives to make and maintain healthy lifestyle choices, health insurance premiums become lower over time as the overall health of the company improves. Insurance companies such as United Healthcare, Humana, and BlueCross BlueShield are also trying to provide a more robust solution around wellness by offering rewards-based programs to their members. Members have to do something for a healthy lifestyle to earn an incentive. For example, if a smoker attends a smoking cessation program, an insurance company may reward them with a gift card.

4. LOOK CLOSELY AT STATE-RUN HEALTH INSURANCE CO-OPERATIVE PLANS.

The ability of states to develop non-profit, member-run health cooperatives that could compete for better rates is part of the health reform legislation, and some advocates feel this aspect of reform hasn’t gotten the spotlight it deserves. While cooperatives have produced mixed results in the past, they can reduce costs when done right, particularly for small-business owners. Health cooperatives are a great opportunity, and hardly any small businesses know about this option. For small group employers, this could mean finding whole new ways to bring competitiveness to the table.

Tags: 2012 Small Business Health Care Reform, Illinois small business health insurance mandates 2012, Illinois small business health insurance options, Small Business health insurance laws, small business healthcare laws

Governor Pat Quinn signed a bill into law that goes into effect June 1, 2010 that will benefit thousands of orthotic and prosthetic users in Illinois covered by private health insurance plans.

The law ensures that coverage for orthotic and prosthetic devices is the same as nearly all medical or surgical benefits.

“Those covered by orthotic and prosthetic insurance policies will get stronger and better coverage that is in line with other medical and surgical insurance benefits,” said Gov. Quinn.

“This new law should provide a greater degree of financial protection and security to those who depend upon these important devices and to their families.”

In addition, the new law will give more orthotic and prosthetic users access to new, technologically-advanced and well-fitting devices.

There are over 69,000 people in Illinois living with limb loss and a comparable number of people living with disabling diseases such as Spina Bifida, Cerebral Palsy and Muscular Dystrophy.

Governor Quinn signed into law HB 2652, which was sponsored by Senator Antonio Munoz (D-Chicago) and Representative Kevin Joyce (D-Worth). The law goes into effect June 1, 2010.

The new law pertains to health insurance plans that contain coverage for orthotics or prosthetics (excluding foot orthotics). It amends the Illinois Insurance Code by adding a section requiring those insurance plans to provide coverage that’s on par with “substantially all medical and surgical benefits” covered in that plan.

The law pertains to health insurance plans covering orthotics or prosthetics that are issued, renewed or delivered six months after June 1, 2010.

Helping to inspire passage of this new law is the family of 14-year-old Allie Johnson, who was born without a right arm. Her insurance company would only cover one prosthetic for her lifetime.

Her mother, Laurie — who for nearly 15 years has worked with Families and Amputees in Motion and is now its president—has spent that last two-and-a-half years working with legislators and other advocates to pass the insurance parity bill.

“This new law is going to help thousands of Illinois citizens. It will improve their lives financially but, just as important, enable many of them to go back to work and contribute to society in general,” said Laurie Johnson.

Other groups and constituents that rallied in support of the Orthotic and Prosthetic Insurance Coverage Parity law include: Illinois Society of Orthotists and Prosthetists; United Healthcare; Tammie Higginbotham; and Douglas Knight, a member of Spina Bifida Association and the National Federation of Independent Business.

Among those joining Governor Quinn at the bill signing ceremony were: Representative Joyce; Senator Munoz; Representative Jim Durkin (R-Countryside), co-sponsor of the bill; Rep Monique Davis (D-Chicago) co-sponsor of the bill; Laurie and Allie Johnson; and Jim Kaiser, a Member of Families and Amputees in Motion.

Tags: H.B. 2652, Illinois Orthotic and Prosthetic Parity Act

All Illinois group health insurance plans that are renewed or amended after June 18, 2009 are subject to the new Illinois state law governing state coverage continuation.

The new law:

• Extends the length of state continuation coverage from 9 months to 12 months. This is a permanent change in Illinois state continuation law.
• Provides a new special enrollment opportunity for electing state continuation coverage and applying for premium assistance subsidized by the federal government under the American Recovery and Reinvestment Act of 2009.
• Entitles an individual participant to an additional 3 months of coverage at their full cost, regardless of the date they first elected coverage, if they are currently on subsidized state continuation and the group’s plan is renewed or amended after June 18, 2009.

Tags: 2009 Illinois health insurance continuation change, 2009 Illinois State Continuation Law Change, Illinois 12 month Continuation of Coverage, Illinois State Continuation Law

Illinois law states continuation of health insurance coverage is only available to an employee or member who has been continuously insured under the group policy (and for similar benefits under any group policy which it replaced) during the entire 3 months period ending with such termination or reduction in hours below the minimum required by the group plan. However, for an employee or member who is involuntarily terminated between September 1, 2008 and December 31, 2009, continuation is available if the employee or member was insured under the group policy on the day prior to the termination.

Tags: 2009 Illinois Continuation of Health Insurance Change, Illinois continuation law, Illinois Continuation Law Change, Illinois continuation of coverage