For years, the Retailers Association of Massachusetts and small-business members of local chambers of commerce have teamed up with other businesses to use their group purchasing power to buy workers’ compensation coverage, electricity, natural gas and pay for other expenses.
Simply put, when businesses pool together to buy in bulk, they lower their costs.
But until recently, small businesses were not allowed to collaborate to buy health insurance, which Jon Hurst, president of the retailers’ group, said is ironic: That’s the highest cost most businesses have besides salaries.
That is, until the state’s Division of Insurance approved two group purchasing cooperatives in December. As of Jan. 1, small businesses can team up and buy health insurance to get more attractive rates. The retailers’ association and a statewide group representing local chambers of commerce will run the program.
...
“Small businesses have been in the very difficult position of being required to offer and provide health insurance for employees and families, yet their increases have been three times the size that big businesses and government have seen,” said Hurst, of the retailers’ group. “That is a situation that is unacceptable economically, politically and legally.”
In fact, according to a state study, insurance rates for small businesses have risen faster than those of larger businesses. From 2008 to 2009, which is the most recent data the state’s Division of Health Care Finance and Policy has, the small group market saw an average premium increase of 9.5 percent. Meanwhile, the mid-size market saw an average 7.6 percent hike and the large-group market, 5.4 percent.
http://www.wbjournal.com/news50607.html
Hat tip: Worcester Business Journal
No comments:
Post a Comment