RAM Shines Light on Small Biz Health Insurance Costs
Governor Patrick Agrees Something Must Be Done

Contact your legislators today and ask them to support H.3452.

Health insurance and health care costs today remain the number one concern for Massachusetts employers and, for years now, RAM has been the lead voice of the small business community on this issue.   

RAM members, small businesses and their employees had looked to the MA health care reform experiment not to limit but to increase their options both on choice and affordability of product.  Unfortunately, the opposite has occurred, and the cost of health insurance and health care remains a major barrier to economic growth in the Commonwealth as RAM member employers struggle on a daily basis to continue to afford to provide coverage to their employees. 

While most have focused recently on the overall health care system cost increases, RAM has consistently stated that more attention should be paid to the equally important issue of premium disparities across purchaser size and type.  Small employers are looking at prices of a family HMO plan this year in excess of $24,000.  Large employers, both big business and big government, have not seen the years of double digit premium increases that small employers have.  As a result, small companies are faced with an unfair and unlevel playing field when compared with their large competitors.

For these reasons, RAM has continued to push to the forefront the issue of small business health insurance reform, focusing on the short term solutions needed to address small businesses immediate need for premium cost relief.  RAM has this year called on Governor Deval Patrick and his administration to reject small group rate filings and to allow for small business group purchasing alternatives, an issue long pushed for legislatively via H.3452, An Act Relative to Small Business Health Insurance.

Recently, we have been successful in pushing the issue directly in front of the Governor.  On a conference call in late July, RAM staff and four RAM members spent an hour on the phone with Governor Patrick and key Administration officials, discussing health insurance premiums for small businesses and their employees.  Responding directly to concerns raised on the call, the Governor directed members of his cabinet to investigate potential solutions to escalating premiums. In October, the Governor joined us at RAM member P.V. Sullivan Supply Company in Quincy to announce a plan to address these issues, including immediate hearings to examine small business premium increases and informational sessions around group buying. 

“Skyrocketing premium increases put a stranglehold on small business growth and place a heavy burden on employers and employees alike,” said Governor Patrick. “With this series of recommendations, we are tackling these challenges head on and implementing reforms that will curb costs, maintain affordable care and strengthen the business climate in the Commonwealth.”

The Administration also intends to file legislation amending small-group rating rules and giving the Division of Insurance (DOI) expanded authority to review rate filings.  The hearing process is ongoing and RAM is an active participant. 

However, we remain focused on legislation (H.3452) to return to Massachusetts small businesses the ability to group buy and negotiate with the insurers in order to get better rates and we need all members help in this effort. 

Contact your legislators today and ask them to support H.3452.

Additional Information & Links to News Articles

H. 3452 Fact Sheet

Health insurers seeking rate hike (Globe, 3-6-2010)

Murphy: and Hurst: Protecting businesses from rising health costs (MetroWest Daily News 3-4-2010)

Small business owners decry health costs (Cape Cod Times, 3-2-2010)

Editorial: Unhealthy Policy (Cape Cod Times, 2-2-2010)

Health Care Costs Catastrophic for the Cape (Cape Cod Times, 2-1-2010)

Small Businesses Juggle Health Insurance Premiums (Worcester Telegram & Gazette, 2-28-2010)

Bills would let small business buy coverage in bulk (Herald 2-11-2010)

Patrick wants health cost veto (Globe 2-11-2010)

Deval Patrick tells regulators to curb skyrocketing health costs (Herald 2-11-2010)

Health Care Costs Burden to Small Businesses, Oped Scott Lehigh (Globe 2-5-2010)

Small businesses bridle at health insurance hikes (Globe 11-15-09)

Small firms pay more on health care, data say (Globe 10-30-09)

Insurance options for small firms studied (Globe 8-7-09)