Virginia Chamber launches new small business health insurance plan

The idea was made possible by bipartisan support for legislation pushed for years by then-state Sen. Monty Mason, D-Williamsburg, and then-Del. Kathy Byron, R-Lynchburg, and finally enacted in 2022.

The idea is to create a large pool out of many small groups to get the same kind of cost savings that the state's large employers see, said chamber president Barry DuVal.

"We want to increase access to health care for more Virginians," DuVal said.

The alliance would offer coverage to enterprises with two to 50 employees, to members of a participating local chamber of commerce, the Virginia Farm Bureau or the trade associations that the state chamber expects will sign on.

"Small businesses across the commonwealth struggle with one most important offering, and that's health care benefits for their workers," Gov. Glenn Youngkin told the state chamber's annual day at the General Assembly Wednesday, in announcing the new coverage.

"And can there be anything more important than the words 'you're hired'? Then when we can add to them, 'you're hired. And it comes with health care benefits,'" he said.

The coverage is offered through a partnership with Anthem Blue Cross Blue Shield, which assembled a statewide network of providers and will handle claims and customer service.

DuVal said coverage will be equal to or better than coverage currently available through the Affordable Care Act, while creating a large pool of insured people should produce lower costs.

That's been the experience in Georgia, Indiana, Kentucky, Missouri and Ohio, which have set up similar programs, DuVal said.

Those savings are possible in large part because the alliance allows a wide spreading or risks, and some is because of savings on administrative costs, said Kenn Penn, the chamber executive who took the lead in the six-month long push to set up the alliance.

The insurance will work much like workers' compensation, the coverage that pays claims when people are hurt or die on the job. The overall experience of everyone in the statewide pool will set a baseline rate, and what any one employer pays will be adjusted from that reflecting each firm's situation, including employees' health, age and general, the number of people enrolled, where the firm is located and the benefits offered.

The alliance has raised the $4 million capital base that state law requires of health insurers.

"That's there so that when people make claims, they can be sure they'll actually be paid," Penn said.

The state Bureau of Insurance earlier this month formally approved the alliance's operating plans and financing, clearing the way for it to go to market with local insurance brokers.

Getting there took a six-month push, Penn said.

"There's a lot of behind the scenes work that goes into this," he said.

The alliance is governed by trustees that represent the interest of participating members.

Employers will have to contribute at least 50% of the employee rate for individual benefits in the lowest-cost plan offered by alliance. And like most other small business plans, at least 75% of eligible employees, excluding valid waivers and a minimum of two employees, must be covered under the plan.

Anthem Blue Cross and Blue Shield in Virginia, President, Monica Schmude said partnerships like Anthem's with the chamber can "redefine health, reimagine the health system and strengthen our communities."

Firms in the alliance will also be able to buy separate dental, vision, life and disability insurance coverage from Anthem at a discounted rate.