SMALL BUSINESS HEALTH INSURANCE

The issue is enhancing the ability of Iowa's small businesses to provide health insurance coverage to employees on a cost-effective basis.

While all members of the Iowa business community continue to wrestle with the rising cost of providing employee health insurance benefits, the problem is most acute for our smallest companies. The difficulties range from an inability to find coverage to not being able to afford the coverage that is available.

During the 2006 legislative session, ideas aimed at easing the small business health insurance dilemma were offered by the Governor and members of both the House and Senate. The various proposals by the Governor and Senate and House included a state reinsurance fund, a small business health care tax credit, bona fide trade or professional association pools providing coverage for employees and their families, wellness initiatives to help lower health care costs, health benefits for certain independent contractors, and a tax credit for businesses that implement a wellness program.

The 2006 legislative session concluded before all interested parties could agree on the best approach to resolving the issue.

Iowa Insurance Institute Position:

The Iowa Insurance Institute is comprised of property/casualty insurance companies that write business in Iowa. While Institute members do not write health insurance, they do understand the difficulties small Iowa employers face in providing health insurance coverage as they compete to attract and retain employees.

The Institute commends the Governor and the members of the House and Senate for their efforts to resolve this issue in 2006 and encourages the various stakeholder groups to continue their efforts in 2007. The Institute believes Iowa's economy and citizens are best served when companies, both large and small, compete for business on an equal footing. A positive resolution to this issue would enhance Iowa's competitive environment and would, therefore, be good public policy.