State health coverage for small firms?

A proposed change to who would be allowed to access the plan that provides health insurance to state employees would let Utah small-business owners save substantial amounts of money and their employees receive additional medical benefits, proponents of the measure said Monday.

"It is going to be an opportunity for thousands of families who have not been able to afford health insurance for their families," said Rep. Steve Mascaro, R-West Jordan.

Mascaro's HB122 creates the Utah Small Business Health Plan, which would allow small-business owners to buy into the state's existing Public Employee Health Plan (PEHP).

Coverage would begin on July 1, 2007, after an advisory council established eligibility and coverage limits under the new plan and the 2007 Utah Legislature approved the final details.

Speaking at a Monday news conference, Rep. Patricia Jones, D-Cottonwood Heights, said she supported the "concept of the bill."

"One of the biggest, if not the biggest, challenge that our small businesses face right now is how to fund health insurance for their employees," Jones said.

Increasing health insurance premiums have caused 4,000 Utahns to lose their health benefits annually, according to the Utah Alliance for Health Policy Solutions. Only 55 percent of the state's small-business owners provided benefits to their employees in 2003.

"It is appropriate and reasonable for the Utah Legislature to look for alternatives," said Joe Jarvis, Utah Health Alliance executive director. "If we are truly interested in both economic development and providing insurance to all Utahns, we must stop the waiting for health benefits among small businesses."

Critics of a PEHP buy-in have expressed concern that employees of small businesses would rush to leave their current health coverage in favor of the state's plan, which is believed to be significantly less expensive. To prevent that, Jarvis said, HB122 includes a "look-back period" that would require workers to be uninsured for a period of time before they are eligible for the new plan.

Gov. Jon Huntsman Jr. has advocated opening PEHP to small businesses, but has taken a neutral position on HB122.

Mascaro said Monday that the governor's lack of support neither hurts nor helps his bill's chances of success. Building time into the legislation to fine-tune the program is a "prudent" approach to opening up PEHP to small businesses, he said.