Kudos to the Kansas City Small Business Monthly for your July article on the challenges health insurance presents to small business. In fact, I find it to be consistently the top concern of both small business owners and employees.
I am writing to make readers aware of another program addressing this issue, in addition to those described in your article.
In 2000, the Kansas Legislature authorized creation of the 10-member Kansas Business Health Policy Committee. It also authorized appointment of a private, non-profit organization to represent the best interests of Kansas’ small businesses, serve as a liaison to the private sector, and find solutions to the skyrocketing cost of small business health insurance. This initiative was created to accomplish two specific goals: help Kansas small businesses lower the cost of health insurance; and reduce the number of uninsured Kansans by increasing the availability of health insurance, especially for lower income employees.
Since the launch of Kansas Health Partners Benefit Association (KHPBA) in November 2002, we have achieved positive results. Working with private insurance carriers, we have developed lower-cost small business health insurance plans, reducing premiums by 40 to 50 percent.
We’ve also made available statewide information and education outreach programs for small business owners, insurance brokers, agents and carriers, economic development officials, tax accountants, and elected and appointed office holders. We identified a little-known and seldom-used Kansas health insurance tax credit for small businesses, and shared that knowledge with the public through the media, direct mail and meetings statewide. We also offer education seminars to insurance agents.
New initiatives being pursued by KHPBA include the development of additional small business health insurance plans through additional private insurance carriers, and the streamlining of Kansas’ Health Insurance Premium Payment System (HIPPS) to boost enrollment and expedite funds for premium payments. KHPBA has been working with Kansas Social and Rehabilitation Services (SRS) to submit a federal HIFA waiver to enable the state of Kansas to use Medicaid dollars as subsidies for private employee/employer insurance plans. The Partnership Board is made up of small business owners from around the state who understand that these programs have to be both easy to understand and administer, and must be affordable if they are to offer any relief to small companies.
The rising cost of health insurance isn’t going to be solved at the state or local level, but there are innovative and creative private/public approaches that can bring some peace of mind to small businesses and their employees. We at the Partnership welcome your input. Find out more at www.hpbaks.org.
William L. Kostar is chairman of Kansas Health Partners Benefit Association and mayor of Westwood. He can be reached at (913) 362-1550 or .
