05/ 26/ 2006
Frustrated with the lack of action by the federal government, state legislatures are addressing skyrocketing health-insurance costs and limited availability themselves. Two programs that have attracted the most attention recently are a health-insurance bill that passed the Massachusetts Legislature and Cover-Tennessee, a proposal from Gov. Phil Bredesen.
Massachusetts
The Massachusetts bill is intended to cover 95 percent of the state's uninsured population over three years, which is approximately 515,000 individuals. Its provisions include: a fair-share contribution of $295 per full-time employee for those who employ 11 or more but don't offer health insurance; a mandate requiring all Massachusetts residents to obtain health-insurance coverage by July 1, 2007; and a connector agency that will link individuals and small businesses with available private health-insurance options and certify these options to make sure that they are of high value and good quality.
Gov. Mitt Romney vetoed several provisions, including the $295 assessment and certain mandates, though at press time, it was unclear if the vetoes would be overturned. NFIB supported some parts of the legislation, yet is concerned that so many of the details of the program are left to regulators to determine, making it difficult to evaluate the final cost to employers.
Tennessee
Gov. Bredesen proposed a voluntary program that he calls "affordable and portable," with premiums, which are targeted at $150 per month, shared equally between the state, a willing employer and an individual. The plan would offer basic coverage with premiums that vary depending on age, tobacco use and obesity. It would be available to uninsured working Tennesseans below 250 percent of the federal poverty level ($50,000 per year for a family of four, and individuals who earn $24,000 or less) who work for an employer with 25 employees or less. The details of the Tennessee plan are unclear at this point, though NFIB/TN members voted to conditionally support the plan, pending more information.
Other states
In the meantime, at least 16 states have passed, or are considering, measures that would loosen the requirements for what qualifies as a dependent under many coverage plans, including raising age limits for dependents. California passed a bill that would have cut off dependency at age 26, but that law was vetoed by Gov. Arnold Schwarzenegger, who was concerned the plan would burden businesses.
Be Connected
Find out what's happening in your state. Visit your state page at www.NFIB.com/stateabbreviation (Ex: www.NFIB.com/TN)
