Small-employer health insurance

A bill approved by the House Health and Human Services Committee March 10 would require the state’s health insurers to provide flexible benefit plans to businesses with no more than 50 employees.

Sponsored by Rep. Denise Dittrich (DFL-Champlin), HF3721 would require health carriers to provide information to small-employers on the availability of various plans that the 2005 Legislature passed.

The 2005 health care reform packages were designed to give small businesses product flexibility and cost reductions, Dittrich said. The problem is insurance companies are not offering or marketing those plans.

Information on the plans would be displayed with other product information on the health carrier’s public Web site and delivered to each employer currently insured by the carrier at the time of the employer’s renewal.

Her original proposal would have mandated the state’s top three insurance companies offer the plans, but an amendment successfully offered by Rep. Paul Thissen (DFL-Mpls)removed references to specific health carriers. The bill would now apply to “each health carrier in the small employer market.”

Dannette Coleman, Medica vice president of public policy and government relations, said other low-cost products are already mandated; therefore, the legislation wouldn’t provide any added health benefits.

Rep. Steve Gottwalt (R-St. Cloud) said the bill attempts to regulate the health care market with the potential of small employers not even purchasing the plans. It would also add costs to health carriers because each health benefit plan offered to consumers is required to be approved by the commerce commissioner, he said.

The bill now goes to the House Commerce and Labor Committee.

A Senate companion, SF3446, sponsored by Sen. Kathy Saltzman (DFL-Woodbury), awaits action by the Senate Commerce and Consumer Protection Committee.