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Co-op hopes to ease health insurance costs

JANESVILLE — The high cost and low availability of health insurance in southern Wisconsin are major concerns of small business owners that a new health insurance co-operative plans to tackle.

Chambers of commerce in Rock, Walworth, Green, Jefferson, Dane and Dodge counties have formed Healthy Communities Cooperative, a health insurance initiative focused on delivering high quality, affordable health care to participating companies.

Forward Janesville is not one of the nine participating chambers of commerce. It is working on its own health insurance program that eventually will be available to small businesses.

The co-op 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.

The local board’s first goal is to lower medical insurance costs with the bargaining power that could come from 1,000 employees, said Jacki Seversen, president of Healthy Communities Cooperative and a group benefits representative at Schwartz & Shea Insurance in Janesville.

The co-op is negotiating with several insurance companies and health management firms. It hopes to designate a carrier by Dec. 1 and implement the program next summer.

According to the U.S. Small Business Administration, insurers of small health plans have higher administrative expenses than those that insure larger group plans, and employees at small companies are less likely to have coverage than employees at larger companies.

“The cost of health care is consistently ranked at the top of chamber members’ concerns,” Seversen said.

“Under this new health insurance co-op, even small business members will benefit from possible preferred insurance rates not available in the traditional market, especially at renewal due to the wellness component of the plan that rewards positive healthy lifestyle changes.”

Wellness is a critical component of the program, Seversen said. Too often, she said, small business owners get slapped with huge premium increases without the opportunity to understand them or do anything to lower them.

“The whole idea is to give credit where credit is due and offer a carrot for being a good consumer of health care,” Seversen said. “Most plans for small employers offer no incentives to be healthier, and the backbone of this program will be small companies who want to work to change things around.”

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.

TO LEARN MORE

Visit www.healthycommunitiescoop.org or call the chambers of commerce in Beloit, Brodhead, Delavan, East Troy, Evansville, Fort Atkinson, Jefferson, Milton or Whitewater.