The small-business health insurance marketplace offered only in Clark and Cowlitz counties in 2014 will expand to include the rest of the state in 2015, allowing businesses with 25 employees or fewer to purchase health plans and cash in on a 50 percent tax credit.
The small-business exchange will offer more options for Southwest Washington employers than the rest of the state — unlike the individual insurance exchange where Clark County residents have fewer options than residents in most other counties.
On the state-based business exchange, called Washington Healthplanfinder Business, Moda Health will offer 14 plans across the state. Kaiser Health Plan of the Northwest will offer nine additional plans in Clark and Cowlitz counties, for a total of 23 plans in those two counties.
“We are thrilled to launch our statewide offering for small businesses in Washington this year,” said Richard Onizuka, chief executive officer for the exchange. “With the addition of Moda Health, we’re confident that employers will be able to find a qualified health plan that’s right for their employees and their budget.”
Washington Healthplanfinder Business is open to small businesses in the state with 50 or fewer employees. Businesses with 25 or fewer employees may also be eligible for a 50 percent tax credit if they meet employee participation requirements.
Washington Healthplanfinder intended to launch its business exchange statewide last October, but only Kaiser submitted plans for the exchange. So, for the last year, the business exchange has only been available in Clark and Cowlitz counties.
“It’s been really valuable to have the experience with the two counties and working with Kaiser,” said Catherine Bailey, director of the business exchange. “It’s really provided us with an excellent almost-pilot for the rest of the state.”
Eleven businesses — nearly all in Clark County — are currently enrolled with the business exchange and providing health coverage to 40 employees, Bailey said.
Ron Wanger, owner of Royal Ridges Retreat in Yacolt, used the exchange in February to purchase health coverage for his employees. Royal Ridges is a nonprofit organization with three full-time employees (another employee may be hired in the coming months).
Wanger provided health insurance to employees prior to the creation of the business exchange and received a tax credit for doing so. Once the exchange was established, though, employers had to purchase plans through the exchange in order to receive the tax credit.
Wanger debated whether to eliminate health benefits or wade into the exchange.
“I basically was scared to death of it because it was a governmental type thing,” he said. “I wasn’t sure if I wanted to get involved with it.”
When he checked out the exchange website, www.wahealthplanfinder.org, Wanger was surprised to find that the system was easy to navigate and had answers to his questions. He decided to use the exchange to purchase a health plan for his employees.
The plan is comparable in price to his previous plan and he receives the same tax credit, Wanger said. He has set up one automatic monthly payment to the exchange, which covers all of his employees’ premiums.
“Until I add an employee or someone leaves, I don’t have to mess with it,” Wanger said. “It’s seamless.”
Through the exchange, employers can choose to either offer one plan or one tier of plans (bronze, silver or gold) to their employees. The employer also sets their contribution amount, which must be at least 50 percent, and can designate whether employees’ dependants are covered as well, Bailey said.
After those decisions are made, the employees can look at their options and make a selection. Once all employees are enrolled, the employer makes one monthly payment to the exchange, which then administers payment to the insurance company or companies, Bailey said.
Because the exchange operates online, employers can browse the plans and make selections at their own pace, Bailey said. The exchange also has customer support representatives at its call center to answer questions, she said.
“Don’t be afraid of the exchange,” Wanger said. “It’s not this awesome big monster that’s going to consume them and eat them up.”
“I had those fears,” he added, “and I found them to be groundless.”
