Illinois Will Help Small Businesses On Health Insurance

From the Post Dispatch

To help small businesses, Illinois is setting up a clearinghouse for assistance resources statewide and a consortium to buy health insurance.

The state’s Department of Commerce and Economic Opportunity gave $75,000 to the Chicagoland Chamber of Commerce to study the needs of small firms and the prospects of starting a small-business insurance purchasing pool. Grouping such companies into one large pool will provide predictable premiums and preserve jobs, said Jack Lavin, director of the Illinois Department of Commerce and Economic Opportunity.

"Small businesses need that predictability to plan for growth," he said. "It’s important for economic development; small businesses are the backbone of our economy, and we need to address this issue."

A study by Dartmouth College indicates that as health insurance premiums rise, small firms jettison jobs. Using Dartmouth’s measure, Illinois loses 80,000 jobs every time premiums increase 10 percent, said Michael Fields, the chamber’s director of policy and research.

The first step is to study small firms’ needs, then craft a plan that would be available through chambers of commerce around Illinois. Businesses statewide are asked to take the survey offered by the Chicago chamber, said chamber President Jerry Roper.

After the study, the chamber will work with DCEO on any legislation that might be needed to create the plan and with insurers in Chicago that might be interested in becoming vendors. No state funds or purchasing avenues will be part of the plan, officials said.

Initially, DCEO discussed allowing businesses to buy into the state employee health plan, but the costs were too high for company owners, Lavin said.

There is no firm target date for launching the program, but the chamber hopes to present Governor with a plan by year’s end, Fields said. It would start in Chicago and eventually be offered to other chambers around Illinois, most likely starting with Peoria.

The St. Louis Regional Chamber & Growth Association has offered several health insurance plans since 1971, said plan administrator Pamela Ruckman, vice president of Marsh Benefits in St. Louis. Throughout the 15-county metropolitan area, RCGA members are eligible to join, but they don’t save money on premiums over what is charged to nonmembers, or the "street rate."

About 300 companies are enrolled in the RCGA’s four plans, Ruckman said.

Associated Industries of Missouri, a group of 1,200 mostly manufacturing firms, just rolled out its own plan for members a month ago. There will be some savings on premiums, but exact numbers are unknown, depending on each businesses’ particular situation, said the organization’s president, Gary Marble, in Jefferson City.

For Illinois entrepreneurs who need help getting a company started or firms that want to grow, the state has launched a new Web site and toll-free telephone number as a referral center. The Illinois Entrepreneurship Network can link entrepreneurs with a variety of resources around the state, depending on their requirements.

A free needs assessment will be done of each company or entrepreneur, and each will be matched with centers for small-business development, procurement assistance and entrepreneurship. Users can also receive information on venture capital companies and other resources, said Governor spokesman Andrew Ross.

"This will be just another tool that people throughout the state can use to help grow their businesses, reach critical milestones and achieve their dreams," Ross said.

Getting help

Illinois businesses with two to 99 employees can take the survey offered by the Chicago chamber at www.chicagolandchamber.org