By CRAIG CROSBY
Staff Writer Sunday, March 25, 2007

Garbacik's problem is common among many of the state's small businesses.

His business was neither large enough to qualify for the reduced rates of a group health insurance plan, nor could he afford to provide individual policies for his workers.

"I couldn't really pay employees' insurance because it wasn't a business insurance," Garbacik said. "You have to have quite a production to create benefits to begin with."

Since last month, however, the employees at Garbacik Surveyors in Augusta have been covered by Chamber BlueOptions, a new health insurance program offered through the Maine State Chamber of Commerce that offers companies with between 2 and 50 employees a host of options never before available to small businesses.

"It makes it affordable for the employee to purchase insurance," Garbacik said. "They're happy we have it now."

Small businesses have typically been limited to a one-size fits all policy, but Chamber BlueOptions, which also is available to the self-employed, offers small business employees the option of five health plans of varying coverage levels and premiums.

Moreover, companies in the program qualify for group coverage with just 60 percent of eligible employees enrolling; typically 75 percent of the employees must participate to qualify for group coverage.

That, too, was crucial for Garbacik, who employs a veteran who already receives health coverage through the government.

"In order to go into a group plan (before) I would have to get insurance for him even though he doesn't need it," Garbacik said.

The only requirement to take advantage of the Chamber BlueOptions is a membership to a chamber of commerce within the state.

"This is the first time that a small business can offer its employees five choices of health insurance coverage at one time," said Dana Connors, president of the Maine State Chamber of Commerce.

Variety is crucial for Catherine Hebert, co-owner of Sunset Flowerland and Greenhouses, Inc., in Fairfield. Typically Hebert's 12 to 15 full-time employees would vote on a health insurance plan every year and everyone had to join the one selected plan or go without health insurance. Two of Hebert's employees went without rather than pay costly premiums.

"Because there was only this one option, some people did not feel they could be part of the plan," Hebert said.

With varying policies and premiums offered under Chamber BlueOptions, however, employees now can select a policy that fits their level of health and their wallets. All of Hebert's employees are now either insured through their spouses or through Chamber BlueOptions.

"You can customize the program," Garbacik said. "Each employee can design his own insurance. This way I can offer it to them and pay part of it and they can pay part of it, but it's relative to what they decide they want."

Hebert, Like Garbacik, pays an equal amount of her employees health insurance. Employees with lower deductibles pay more out of pocket for their coverage, but employees pay less with increases in deductible. "One of the employees, we're paying almost the entire thing," Hebert said.

Chamber BlueOptions includes three Preferred Provider Organizations, which range from a $5,000 deductible to $1,000, an HMO and a Health Savings Account, which allows employers and employees to contribute to a savings account. The saved money is used for qualified medical expenses until a deductible limit is reached and insurance takes over other qualified expenses.

Premiums for single coverage range from $400 per month for the HMO to $270 for the PPO with a $5,000 deductible, said Don Antonucci, director of small group sales for Anthem Blue Cross & Blue Shield of Maine, which is working with the Maine State Chamber of Commerce to offer Chamber BlueOptions.

Beginning in 2008, companies with 25 to 50 employees can qualify for a 2 percent discount on annual premiums if they undertake certain wellness activities. To qualify, 75 percent of the group employees must fill out a health risk assessment and 25 percent must become active users of Anthem's online fitness program, Antonucci said. It is the first time Anthem has offered such an incentive.

"We're excited to try that out," Antonucci said. "It gives us an opportunity to try it out and see if we can expand it."

Companies began signing up for Chamber BlueOptions in January and already more than 150 businesses have climbed aboard, Antonucci said. That represents more than 1,000 new health plan members.

"We've gotten an incredible response," Antonucci said. "Of the brand new business to Anthem, roughly 50 percent is coming from the uninsured in the first three months."

The program has made a difference in the number of businesses signing up as members of their local chambers of commerce, said Kimberly Lindlof, president and CEO of the Mid-Maine Chamber of Commerce. Six of her member companies have already signed up for Chamber BlueOptions.

"We're getting members because of it," she said. "I'll get more people to join my chamber because of this benefit and they'll stay because they want to offer this benefit."

The program has been popular with attorneys, who recently saw a spike in insurance rates, and construction companies.

"A contractor I spoke to was just excited he'd be able to offer it," Lindlof said. "We're a small-business state, and it's hard for small businesses to compete for quality employees when you can't offer the benefits the bigger companies can. This is just another benefit small companies can offer to compete."

There was always a danger Garbacik would lose employees to larger firms that provided health insurance, he said.

"This way I can attract new employees," he said. "Before, I couldn't provide health insurance, now I can offer it to them, with the business paying a percentage. Most qualified people would want some kind of health insurance or you would have to pay them a higher wage."

The ability to give her employees a choice was enough to convince Hebert to join the program.

"We worked long and hard on insurance in the past trying to get the best thing for everybody on one policy," she said. "This worked out so it's the best thing for everybody."

Connors said the response from the small businesses community has already surpassed his expectations. He expects more small businesses to take advantage of Chamber BlueOptions once word of its existence spreads.

"It doesn't answer all the issues of costs of healthcare, but it does offer a choice," Connors said. "It's an alternative that is very appealing in many instances and I think that attributes to its early success."

Craig Crosby--861-9253

ccrosby@centralmaine.com