Health Insurance for Small Business Employees

October 10, 2003

By Governor Bob Wise

A top priority of my administration is finding ways to allow every West Virginian to have adequate and affordable health care. One terrific example of a successful program is the Children's Health Insurance Program. Through CHIP, our children can see a doctor when they are sick. Since I took office in 2001 CHIP has been transformed from a little-known, underutilized program to a national model that covers more than 20,000 young West Virginians.

I'm also concerned about adult West Virginians who do not have health insurance. Nearly 20 percent of West Virginians ages 19-64 do not have health insurance. Most of these people are employed. A typical uninsured person is married, a high school graduate, working for a small business and living in a household with an annual income between $10,000-$30,000.

More than 80 percent of West Virginia's businesses employ 50 or fewer workers. Of those businesses, only 41 percent offer health insurance to their employees. It's not for lack of concern on the part of small employers; they care for their employees, and know that healthy workers are productive workers. But in many cases, finding affordable coverage for small numbers of workers is impossible.

Through the Public Employees Insurance Agency a project is under way to create an affordable, full-coverage health insurance plan for small business. The Robert Wood Johnson Foundation has provided a $1.3 million grant for the project, and the state is providing almost $1 million of support through in-kind services.

My goal is to offer health care coverage at rates 20 to 25 percent below the current private market to defined small businesses. The lower rates will be achieved through the buying power of PEIA and the efficiency of its management. This program must be self-supporting, though; it will not be subsidized by the state.

At this point, PEIA is exploring two different ways to support the small business health policy pool. One way will be to form a partnership with the established private insurance carriers. The second way would be to create a sub-pool under PEIA. Very active discussions are underway right now to choose the most viable option.

This policy question, and many others, will be studied by the project's Policy Advisory Council. The Council is a voluntary group composed of state residents, health policy experts and state officials. They will work with PEIA and the small business community to find real solutions and make West Virginia a better place to work and a healthier place to live.

The input of small business owners and employees is vital to this project's success. You can contact PEIA at (304) 558-6244, or on the web at www.wv.gov.