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Chambers to study insurance option

JANESVILLE — As the debate continues on national health care reform, chamber of commerce members in six southern Wisconsin counties soon will learn about a new cooperative formed to address the high cost and low availability of health insurance for small business owners.

The Healthy Communities Cooperative comprises chambers in Rock, Walworth, Green, Jefferson, Dane and Dodge counties.

Membership is open to any member of one of the 10 participating chambers of commerce, including Beloit, Brodhead, Delavan, East Troy, Evansville, Fort Atkinson, Jefferson, Milton, Monroe and Whitewater.

HCC has partnered with WPS Health Insurance, which will offer its full insurance portfolio.

A wellness program is a cornerstone of the cooperative's plan, said co-op president Jacki Seversen, group benefits representative at Schwartz & Shea Insurance in Janesville.

It's designed to help employees identify risk factors and health issues and to educate and help motivate individuals to make healthier choices.

Too often, Seversen said, small business owners get slapped with huge premium increases without the opportunity to understand them or do anything to lower them.

Starting with a health risk assessment, those insured by the plan will play an active role in keeping their health insurance rates under control by participating in the wellness program, she said. The goal is to identify lifestyle choices that help people improve their health.

The program coordinates existing community programs, resources and activities, along with education on proper diet and exercise, to promote healthier lifestyles and reduce future claims.

Jeff Klett of Tricor Insurance in Beloit said he's not sure the national health care debate will have much of an effect on the Healthy Communities Plan, which is targeted at small companies that are committed to wellness programs and expect savings from those programs.

"The national debate is getting a lot of attention, but there are so many 'ifs' associated with it," said Klett, who also is an HCC board member. "Ultimately, if it goes through, it would be a government plan that outlines what you get and what you don't get.

"We're proceeding under the assumption it won't go anywhere for a while."

Klett said small businesses that will consider the HCC plan might already have some sort of group coverage. Others might be small, one-person operations that can't get group insurance.

Still others, he said, might not offer their employees any type of insurance.

The draft of the House bill on health care reform would impose payroll taxes ranging from 2 to 8 percent on businesses that don't provide health benefits.

Klett said he doesn't think the proposed payroll tax would be much of a factor for those businesses considering the HCC plan. Small businesses that commit themselves to wellness will receive savings, and that will be their motivation, he said.

In some cases, he said, it's much cheaper for a company to pay the tax than provide health insurance.

And it's entirely possible that health insurance co-ops would be exempt from the national payroll taxes, said Lori Warren, who is also an HCC board member.

"We've been working under the idea that it won't affect us and that we will make this work," Warren said.

HCC is an independent corporation run by a board of directors elected from the participating communities. It became possible when Wisconsin passed a landmark co-op care law that allows cooperatives to bargain for adequate, cost-effective health insurance for agricultural producers and small businesses.

That excites Warren of American Awards & Promotions in Milton. The company has five employees, and Warren is eager to convert her health care coverage to the co-op's plan.

"We're looking forward to it because it gives us more opportunity to do things that affect our premium," said Warren, who also serves on HCC's board.

Starting Monday, the cooperative has scheduled a series of informational meetings to unveil the details of the health and wellness plans the co-op developed with WPS.

Representatives from the HCC board of directors and a representative from WPS will offer program details.

Applications for the health plan will be accepted this fall, and the plan is expected to take effect Jan. 1.