by Timothy McQuiston, Vermont Business Magazine How much all this is going to cost is still unknown, despite being not more than a year away. But Vermont employers will be required to live within the new health insurance rules coming in 2014, so the Vermont Chamber of Commerce is already setting up a comprehensive benefit plan for its members through a program called Chamber Preferred.
Starting January 1, 2014, Vermont law will require that small businesses throughout the state offer health insurance through the governments health insurance Exchange. To supplement employer benefit packages, Chamber Preferred provides an online marketplace where companies of all sizes can offer a number of important insurance benefits not included in the Exchange, like dental, vision, disability and life insurance. This program will allow employers to control employee benefit costs while employees are given the opportunity to enroll in comprehensive insurance plans with competitive rates.
Managed by Digital Benefits Advisors, Chamber President Betsy Bishop said the employer can offer cafeteria type benefits under the Chamber Preferred plan. The new defined contribution plan allows for employees to choose which benefits they want within the confines of how much money is available to them. This contrasts to the old defined benefit plans were all used to, in which the employer hands the employee a plan with pre-determined benefits.
I like to think of Chamber Preferred as a marketplace, Bishop said. You can purchase the benefit you want.
The employer sets a defined amount of money to spend on benefits and the employee builds a personalized benefits program from the online store.
The Chamber is trying to get ahead of the states Green Mountain Care health insurance Exchange. The Exchange (SEE SIDEBAR) will become the law of the land, or at least the law in Vermont, starting January 1, 2014.
At that time, the Chamber will no longer be able to offer health insurance as part of its benefit plan for companies with 50 or fewer employees. Those employers will only be able to choose from one of the three Green Mountain Care options. Those with more than 50 can access the Exchange or go to outside health insurers, and could still get their insurance through the Chambers insurer. In either case, the Chamber Benefits will be available to all Chamber members for all other benefits.
The Chamber Preferred program will allow a lot of small businesses in Vermont to streamline their approach to employee benefits, said Allen Nassif, president of Northern Benefits. With the forthcoming changes to health insurance, small businesses in the state dont know what to expect financially. Joining the Vermont Chamber to offer cost-effective options for Vermont employers and employees is an important way to maintain the vitality of the businesses that make up the majority of our local economy.
After enrolling in the Chamber Preferred program, employers simply determine the amount that they will contribute to employees each year, which aids in budget planning as well as minimizing costs associated with benefits management. Employees use the online platform to choose their own specific insurance needs and costs that meet their individual or family circumstances. Businesses that are Vermont Chamber members can sign up now for effective dates beginning January 1, 2013, and there is no fee to participate beyond the usual cost of chamber membership.
One of the growing concerns small businesses are experiencing is the attraction and retention of employees once the state-mandated health care exchange is put into place. Chamber Preferred offers a straightforward solution to delivering competitive benefits packages by offering benefits like dental, vision, disability, accident and life insurance. Customized plans will allow employees to enroll in competitive, comprehensive insurance products that are rarely available to small businesses.
The Chamber Preferred program is a truly innovative approach to providing optimal benefits solutions to businesses in Vermont, Bishop said. Partnering with local businesses is allowing us to deliver excellent advantages to employers, employees and their families in an extremely effective way.
The Green Mountain Care Board has not set prices yet, which is frustrating insurance agents, like Nassif.
Businesses dont like unknowns, Nassif said. Hes concerned that with the unchartered waters Vermont is about to wade into with the health insurance Exchange, including not knowing yet what the premiums are going to be for each of the three levels, that employers here will be cautious about expanding their businesses in Vermont. Businesses looking to come to Vermont may choose to locate somewhere else, he said.
However, Nassif said the large purchasing group created by Chamber Benefits will allow for cost containment, similar to a cooperative. His clients should also find less expensive options for otherwise expensive products, like disability insurance.
Northern Benefits, based in Burlington, is the largest small group benefits brokerage in Vermont.
The Chamber Preferred program is organized through the Liazon Corporations Bright Choices Exchange, a market-leading private benefits exchange for businesses across the US.
For additional information about the Chamber Preferred plan, visitwww.chamberpreferred.org; for more information about Northern Benefits, visitwww.vtbenefits.com.
This story originally ran in the December issue of Vermont Business Magazine.
Vermont Health Benefit Exchange
A key provision of the Patient Protection and Affordable Care Act (ACA)requires the creation ofa Health Benefit Exchange in each state. The Exchange is an online marketplace for health insurance products that requires all vendors (insurance carriers and state health programs) to play by the same rules. In 2011, the Vermont legislature passed Act 48 a law that created the Vermont Health Benefit Exchange. Vermonters will be able to start shopping for health plans on October 1, 2013 and the Exchange plans will kick in on January 1, 2014. (MORE)