Office of the Governor
- Press Office| FOR RELEASE Tuesday, May 20, 2003 |
CONTACT: Dan Hopkins - 303-866-6324 Kristen Hubbell - 303-866-6323 |
OWENS SIGNS LEGISLATION TO MAKE HEALTH INSURANCE MORE AFFORDABLE, AVAILABLE FOR SMALL BUSINESSES
(DENVER) – Employees of small businesses, many of whom have seen their companies drop health insurance coverage in recent years, may now have the opportunity to obtain more affordable health insurance coverage, under legislation signed today by Governor Bill Owens.
“Affordable health insurance plans simply have not been available for many small businesses in recent years, primarily because state law had eliminated the possibility of offering basic coverage,” Owens said. “This ‘all or nothing’ approach simply hasn’t worked. Now Colorado’s small businesses will have the option of offering a basic lower-cost health care plan to their employees.”
In 2001 and 2002, over 14,000 small companies in Colorado employing over 125,000 people abandoned the health insurance market for small businesses, according to the Colorado Division of Insurance.
HB 1164, sponsored by Rep. Lola Spradley and Sen. Mark Hillman, provides businesses with 50 or fewer employees the option to offer a basic lower-cost health insurance plan with fewer government mandates. Small businesses still would have to option to purchase more comprehensive plans.
The bill also creates a pilot program to allow small businesses to pool together in what is called a Multiple Employer Welfare Arrangement (MEWA) to buy group health insurance, giving the small businesses greater purchasing power.
The Governor credited Lt. Governor Jane Norton for her efforts in making health insurance more affordable and accessible. Since taking office in January, the Lt. Governor held over 100 meetings on health insurance and health care statewide, attended by over 2,000 people. She also worked extensively with the state Legislature.
“As I met with small business owners, they consistently told me that their number one priority was to be able to offer an affordable basic health insurance plan that would best meet the needs of their employees. They also wanted the ability to band together in order to leverage their purchasing power for health insurance. Today, we can tell small businesses statewide that we have delivered,” Norton said.
In addition to HB 1164, Owens also signed:
- SB 68, sponsored by Sen. Bob Hagedorn and Rep. Greg Brophy, which provides for a thorough cost-benefit analysis of the effects of any new mandated health insurance coverages before they are imposed on consumers; and
- HB 1007, sponsored by Rep. Tambor Williams and Sen. Mark Hillman, which will help control health insurance costs and maintain access to medical care by restoring Colorado’s cap on non-economic damages for all medical malpractice actions.
Among the groups supporting the health insurance reforms were the Colorado Association of Commerce and Industry (CACI), the Colorado State Association of Health Underwriters, the Colorado Press Association and various chambers of commerce.
“This legislation is a very courageous step in our quest for better health care,” said Jeff Crank, Senior Vice President of the Greater Colorado Springs Chamber of Commerce. “Through rating flexibility and fewer state mandates, I believe this law will provide increased competition among health insurance companies, lower costs and greater access to health insurance.”
Ed Otte, executive director of the Colorado Press Association, added, “Finding affordable health insurance is one of the most significant problems facing Colorado’s small and medium sized newspapers today. This legislation will allow the Colorado Press Association, and many other businesses in Colorado, to form multiple employer arrangements to help address this problem for our members.”
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last modified May 20, 2003
