Dan Hayes began working at Purcell’s Business Products, in Campbellsville, Kentucky, in the 1970s. By 1980, he owned the business – selling office supplies, furniture, copiers and other office equipment with eight employees.
A desire to “do good by our employees” led Hayes and his wife, Linda, to offer health insurance as a benefit. It was no small task for a small business owner, but it was made easier by ICARE – Insurance Coverage Affordability and Relief to Small Employers.
Purcell’s is one of the first companies to be approved for an incentive payment through ICARE, which offers monthly payments to assist qualified businesses with the cost of providing health insurance.
Governor Ernie Fletcher and the Kentucky Legislature worked together to create ICARE.
“This will have a positive impact,” Hayes said. “We appreciate the state being willing to help small businesses.”
Ninety-three percent of Kentucky companies have fewer than 50 employees. More than 700,000 Kentuckians are employed by such companies. But for many, health insurance has been beyond reach.
“It’s really expensive for small businesses trying to offer this benefit,” said Donna Bumgardner, of Fleming Tractor and Equipment in Flemingsburg.
Bumgardner’s father-in-law opened Fleming Tractor and Equipment in 1962. She and her husband, Vernon Paul Bumgardner, took over in 2000. ICARE has helped make health insurance more affordable.
“Anything is great when dealing with insurance costs. This is wonderful,” Bumgardner said.
That was echoed by Emma Martin, who with her husband, Ray, owns Ray Martin Plumbing Co., in Henry County. The company has been in business since 1978.
“This means a lot since we are a small company,” Martin said. “This money will be a big help.”
ICARE began taking applications in November. To be eligible, companies must have two to 25 employees. They must pay at least half of the employee’s premium for single coverage. Salaries of eligible employees can average no more than $29,400, which is 300 percent of the federal poverty guidelines. Salaries of owners and employees who are ineligible are not included in the average.
Businesses meeting all eligibility requirements can receive payments of $40 or $60 per employee per month, depending on whether they are accepted into the program due to offering health insurance for the first time or because an employee has a defined high-cost condition.
To date, 81 Kentucky businesses have applied, representing 696 employees.
“We are pleased with the number of applications and are ready to process even more,” said Julie Mix McPeak, executive director of the Kentucky Office of Insurance, the state agency administering ICARE. “We have received very positive responses from the companies involved and believe this program will have a great impact by providing a financial incentive to small businesses for offering health insurance. This benefit is vital to keeping these businesses competitive and viable.”
Business owners interested in learning more about ICARE may contact any Kentucky-licensed health insurance agent or call the ICARE program at 877-ICARE07 (877 422-7307). The application is available at the ICARE Web site http://www.ICAREKY.com
Source: Kentucky Environmental and Public Protection Cabinet and Office of Insurance
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