Gov. Timothy M. Kaine has signed House Bill 761, legislation that will allow small businesses — those under 50 employees — to form health-insurance buying cooperatives. States a press release issued by the Governor’s office:
The legislation is consistent with other federal and state statutes related to small group market issues. It allows businesses to have flexibility in how they form purchasing pools, either by establishing one person or entity to be responsible for collection and payment of premiums, or by allowing each company to take responsibility for its own policy. The savings potential of this health insurance pooling depends on the size, composition and administration of the pool.
Gov. Kaine has pushed for legislation like this for a long time, and anything that makes it easier for small businesses to provide medical insurance for their employees is a positive step. I’m skeptical, however, that this measure, by itself, will have a big impact on the healthcare marketplace because, as I read the bill summary, it does nothing to exempt these insurance pools from mandated insurance coverage.
In Virginia insurance plans are required to include every conceivable health care profession and medical procedure, making it impossible for businesses to offer affordable, bare-bones insurance coverage. If you’re a contractor or shop owner, you don’t have the luxury of offering a stripped down Jeep Cherokee to your employees — you can only offer the model with leather seats, tinted windows, racing strips, surround-sound speakers and the rest of the luxury package. Not everyone can afford it.
HB 761 is a part of the solution to Virginia’s health care crisis — but only part.
