ASBA Member Benefit
Posted on Nov 02 2007 at 1:03 PM
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Most Arizona small businesses do not offer health insurance to their companies, but one group wants to help change that.

The Arizona Small Business Association now offers a high-deductible health plan through Cigna that will give companies another health-care option. "Our health-care system is in a crisis," said Joan Koerber-Walker, chief executive officer of the Arizona Small Business Association. "(High-deductible plans) make consumers more aware of where their health-care dollar is going."

Koerber-Walker said the plan gives small businesses another insurance option. An estimated 60 percent of Arizona businesses with 500 or fewer employers lack health insurance, she said.

The state's health-insurance plan for small businesses on Sept. 19 halted enrollment of new members pending a Legislature-mandated review. Healthcare Group of Arizona provides coverage for nearly 26,000 businesses, but no new businesses may be added until a Department of Insurance audit concludes next spring.

The small business association's plan includes an individual deductible of $2,500 for services provided within Cigna's network of physicians, hospitals and health-care providers. That amount doubles for physicians outside the network. Family plan deductibles are $5,000 within network and $10,000 outside network.

The plan has a lifetime maximum of $2 million, and wellness exams are covered. Prescription-drug coverage varies depending on the type of brand and the availability of generic versions. Koerber-Walker said the overall goal is to ensure that more Arizona small businesses and their employees get access to health-care coverage.

To achieve that, the plan emphasizes that businesses and their employees become smarter health-care consumers. Cigna will offer members a Web-based search that offers a comparison-shopping tool for some health services such as magnetic resonance imaging, hospital room rates and prescription drugs. The cost of an MRI in one Phoenix ZIP code, for example, can range from $750 to $1,500, Koerber-Walker said.  "If I was going to buy a laptop, I would shop around for the best price," said Koerber-Walker, adding that people should take a similar approach with health-care options.

Koerber-Walker said the new high-deductible plan replaces another Cigna high-deductible plan "that was not very good" and did not gain traction with Arizona small businesses.

The high-deductible plan is available to all members of the Arizona Small Business Association, which charges an annual membership fee of $125. The association also will retain its health maintenance organization (HMO) plan for its members.

The association serves more than 3,000 small businesses in Arizona.