Small businesses in Utah may have a less expensive option for health insurance if legislators go for a bill giving them access to the state health care program.

House Bill 122, sponsored by Rep. Steve Mascaro, R-West Jordan, would allow businesses that meet the criteria to become members of the Public Employees Health Program. It is not, supporters emphasize, government-subsidized health insurance for private industry.

"It makes available to small business owners a very low-cost, highly efficient system that provides benefits to a lot of municipal, education and state employees in Utah," said Dr. Joseph Jarvis, president of the Utah Alliance for Health Policy Solutions.

Health insurance for small businesses, or in many cases the lack thereof, is a cause for concern nationwide. According to the Kaiser Family Foundation, a nonprofit organization that focuses on health care issues, about 60 percent of small businesses offer health insurance, down 9 percent from 2000. Only one in 50 businesses with more than 200 employees does not offer health insurance.

In 2005, the average annual premium was $10,880, several hundred dollars more than an individual working full-time at minimum wage makes in a year. Premiums have increased by about a third in the last five years.

PEHP is a self-funded nonprofit organization that provides health insurance to a number of government entities throughout the state; it is funded by its member municipalities and entities with tax dollars.

"But some of those taxpayers, specifically small businesses, can't afford benefits in private markets," Jarvis said.

Taxpayers won't be funding the small businesses that buy in. According to the bill, the "plan shall be self-funded by employer premiums and cost-sharing requirements for enrollees, including deductibles, copayments and coinsurance requirements."

It will be less expensive because of how PEHP is run, Jarvis said. Administrative overhead costs are less than 4 percent and the risk per person is spread out over the entire pool, some 175,000 people. The cost per employer would be determined by that business owner and his or her employees. So far, people have liked the idea.

"People who are in the trenches trying to make a profit and provide a benefit, do the right thing for their employees, they love this," he said.

Passage of the bill could prove advantageous for Utah's economy as well. Businesses in the more rural south end of Utah County view the idea as a good one -- if it's as good as it sounds.

"I'm sure anything that would be able to help this dilemma and be cost effective for everyone all around would be welcomed," said Connie Carrasco, manager of the Payson Family Pet Hospital.

She'd look into the option, as would Randy Grimes, administrator of Beehive Homes of Salem. Both said their companies have considered different health insurance options in the past but just couldn't afford it.

Heidi Toth can be reached at htoth@heraldextra.com.

Criteria

Have 2 to 50 employees

Have filed at least one business tax return showing normally accepted business activity

An annual cap of $75,000 on medical care available to an employee and employee's immediate family

Employer has not had other health insurance coverage for a designated time period not exceeding 24 months.

Minimum plan benefits

Hospital services

Physician services

Laboratory services

Prescription drugs

Routine physical examinations

Immunization

Source: House Bill 122

This story appeared in The Daily Herald on page A3.