Ohio DOI Pushes Plan Promoting Flexible Health Plans

The Ohio Department of Insurance has proposed a plan to help small business employees obtain more affordable health benefits. Key components of the plan, designed to provide small employers greater flexibility with health insurance plans, were unveiled in companion bills introduced in the Ohio House and Senate.

“This is not a cure-all plan but the very important first steps toward potentially more economical health insurance options for Ohio small business owners,” said Insuracne Director Ann Womer Benjamin. “The Department has been working closely with Governor Taft and the many interested parties to implement changes that, among other things, would provide small businesses with more flexibility to provide coverage so they are more likely to be able to obtain insurance for their employees, making health insurance more financially viable for small businesses.”

Senate Bill 5 sponsored by Jay Hottinger (R-Newark) and House Bill 5 sponsored by Jim Raussen (R-Cincinnati) would provide small employers in Ohio the option to offer “Flexible Health Benefit Plans” to their employees that allow exclusions of certain state mandated benefits. The legislation also raises health maintenance corporation deductible limits to be consistent with federal laws, encouraging more HMOs to offer Health Savings Accounts to Ohioans.

Republican Gov. Robert Taft directed the department in his 2004 State of the State address to develop initiatives to help Ohio small business employees obtain health benefits. The department responded with a proposal that:

—Creates “Flexible Health Benefit Plans” for small business employers;

—Increases the availability of health savings accounts in Ohio by encouraging more HMO participation;

—Allows HSA products to be reinsured through a state operated reinsurance program;

—Requires health care providers to provide consumers advanced notice of health care services costs;

—Calls for analysis of a high-risk pool to determine its viability as a health insurance option for uninsured Ohioans in poor health and for further analysis of how to increase participation in small employer purchasing alliances.