PROGRAM TARGETS HEALTH INSURANCE COSTS

The Missouri Chamber of Commerce has introduced a program to help small- and medium-sized businesses offer workers health insurance.

The program is designed to combine benefits of self-insurance and traditional health-care plans in a customized program for businesses, said Daniel R. Mehan, president and chief executive officer of the state chamber.

Mehan and a team of health insurance executives were in Cape Girardeau Wednesday in the next to last of a series of meeting to explain the program to businesses. The final session will be held today at St. Louis.

"The price of health coverage has been going up and up," said Mehan. "We're seeing double-digit premium increases" and "in some cases, employers have had to opt out of health coverage."

Mehan hopes Chamber Care will increase the number of employers able to offer health insurance and reduce the cost for those who offer coverage.

Howard Danzig of Howard Danzig Insurance of St. Louis explained the system to a small gathering of about 20 people.

Danzig Insurance and Nicklas Financial Co. of Jefferson City, Mo., will administer the program and have assisted employers in controlling health-care costs due to their strong alliances with companies such as Managed Pharmacy Benefits Inc., a Cardinal Health Co., and Spectrum Risk Management.

Routine coverage

The program allows employers to self-insure routine services for employees and supplement the program with a traditional insurance carrier that most effectively meets the employer's needs, said Danzig.

"Large employers have used this approach to their advantage for a number of years," he said. "Now the Missouri Chamber is making the approach a viable alternative for small- and medium-size employers by introducing a program that will provide health-care options and administrative support necessary to set up and maintain such a program."

Danzig started offering the program in 1989 and has more than 100 clients using it.

"Small business should be doing what big business has been doing," he said. Employers accumulate surplus for times when they are needed by controlling funding for routine services.

"Employers and employees pay for what they use, rather than paying for what they won't use," he said.

Danzig describes routine services as office visits, prescriptions, chiropractor, lab tests, X-rays and emergency room visits.

Insurance statistics

Danzig cited some health-care statistics compiled by the chamber that reveal that one-third or less people in a group will incur $1,000 or more in medical services during a year. About 20 percent will incur no medical expenses in a year, and about 40 percent will not purchase prescription drugs. Less than 15 percent will incur expenses of more than $5,000.

The chamber is selling the program by telling employers they could save up to 40 percent a year with no reduction in benefits.

Jim Rowland, who was present at the Wednesday's meeting, said a similar program fit his needs.

"It's worked well for me," said Rowland, president of Eagle Oil in Jackson, Mo. "It allows me to provide health coverage for my employees."

Such a program is the reason Rowland is still able to provide coverage for his employees. Three years ago he was faced with either eliminating the benefits for his workers or swallowing a 30 percent increase in premiums. He turned to this new approach.

Rowland said the program has allowed him to put money in reserve to eventually provide employees with enhanced benefits.

"This approach has given me control of my insurance dollar," he said. "Now I see exactly what I'm paying for in insurance."

More information about the Missouri Chamber Care program may be obtained by calling Mehan or Karen Buschmann at the Missouri Chamber office in Jefferson City, at (573) 634-3511.