Insure Montana Insure Montana Small Business Health Insurance ProgramSmall Business Health Insurance Program

The Small Business Health Care Affordability Act, was The Small Business Health Care Affordability Act, was requested by State Auditor John Morrison and Governor requested by State Auditor John Morrison and Governor

Brian Schweitzer and was signed into law in May of 2005. Brian Schweitzer and was signed into law in May of 2005.

The program is designed to give tax credits to small The program is designed to give tax credits to small businesses already offering health coverage and to provide businesses already offering health coverage and to provide monthly assistance and membership in a purchasing pool to monthly assistance and membership in a purchasing pool to

businesses that have not offered health insurance in the past. businesses that have not offered health insurance in the past.

About Montana’s Population:•Montana’s uninsured rate ranks among the worst in the nation.

•One in five Montanans or about 170,000 residents have no health insurance.

•53% of Montana’s uninsured population works for a small business.

•80% of small firms not offering insurance would do so if they could afford the premiums.

Insure Montana Purchasing Pool and Tax Insure Montana Purchasing Pool and Tax

CreditsCredits Eligibility Requirements: Eligibility Requirements: – Businesses with 2-9 full time employees where no employee Businesses with 2-9 full time employees where no employee

earns more than $75,000 (excluding the owner) meet the initial earns more than $75,000 (excluding the owner) meet the initial criteria.criteria.

– In order to be eligible for the Purchasing Pool, a business must In order to be eligible for the Purchasing Pool, a business must not have offered group health insurance in the past 24 months. not have offered group health insurance in the past 24 months.

– Purchasing Pool participants receive monthly employer incentive Purchasing Pool participants receive monthly employer incentive payments and employee assistance paymentspayments and employee assistance payments

– In order to be eligible for a Tax Credit, a business must currently In order to be eligible for a Tax Credit, a business must currently pay some or all of the cost of group health insurance for their pay some or all of the cost of group health insurance for their employees. The program also provides additional Tax Credits employees. The program also provides additional Tax Credits when employers pay insurance premiums for the employee’s when employers pay insurance premiums for the employee’s spouse or their dependents. spouse or their dependents.

Insure Montana ImplementationInsure Montana Implementation Purchasing PoolPurchasing PoolCoverage began January 1, 2006 Coverage began January 1, 2006 554 previously uninsured businesses 554 previously uninsured businesses enrolledenrolled3,715 lives covered3,715 lives coveredAverage monthly assistance amount: Average monthly assistance amount: $158 (per employee) $158 (per employee) Average monthly incentive amount: Average monthly incentive amount: $203 (per employer) $203 (per employer) Funding available for approximately Funding available for approximately 675 businesses 675 businesses

Tax CreditsTax CreditsCredit effective January 1, 2006Credit effective January 1, 2006706 businesses enrolled706 businesses enrolled3,500 lives covered3,500 lives coveredAverage yearly tax credit: $3,283Average yearly tax credit: $3,283

Insure Montana Funding Funded by $1 per pack cigarette tax passed by voters. Funded by $1 per pack cigarette tax passed by voters.

Insure Montana was allocated $13 million dollars for the first two years. (FY 2006, Insure Montana was allocated $13 million dollars for the first two years. (FY 2006, 2007)2007)

For the upcoming biennium $20 million dollars has been allocated (FY 2008, 2009) For the upcoming biennium $20 million dollars has been allocated (FY 2008, 2009)

Benefits of Pool CoverageBenefits of Pool Coverage Coverage available through Blue Cross Blue Shield of Coverage available through Blue Cross Blue Shield of MontanaMontana

Employer premium incentive payments and employee Employer premium incentive payments and employee premium assistance payments. premium assistance payments.

Two comprehensive plans offeredTwo comprehensive plans offered

Innovative Expansion of Insure Montana

Included in 2007 Legislation:

1. Addition of wellness benefit.

2. Possibility of changing group size to include sole proprietors and groups with up to 15 full time employees.

3. Stop loss (reinsurance) program with a specific corridor of risk.

Additional Insure Montana InformationAdditional Insure Montana Information

www.insuremontana.orgwww.insuremontana.org

Lisa Crowley, Program Director (406)444-2406Lisa Crowley, Program Director (406)444-2406