Small businesses get help with insurance

‘‘The word is starting to get out,” Stallings said. ‘‘Now that we’ve completed the details of the program, we can turn our attention to outreach. We have a new Web site, which is getting a good amount of traffic.”

The program will have $15 million in state funds available to help small employers and their employees pay for health insurance during the initial year, said John M. Colmers, secretary of the Maryland Department of Health and Mental Hygiene.

‘‘Gov. [Martin] O’Malley asked for $30 million, and I think the demand is out there for that much,” Colmers said during a meeting with Gazette reporters and editors this week.

The legislature approved the program late last year in its special session. The plan is designed for employers with two to nine full-time employees that have not offered health insurance to workers during the previous year and whose employees’ salaries average less than $50,000.

The plan will not offer dental insurance, which Colmers acknowledged was a great need in Maryland. Insurers such as CareFirst BlueCross BlueShield, Coventry Health Care, United HealthCare and Aetna have already agreed to begin enrolling companies under the program, he said.

‘‘We think this program has a lot of potential,” Colmers said.

The program will provide a subsidy of up to 50 percent of the insurance premium. The total subsidy is divided between the employer and the employee based on the contribution each makes toward the cost of coverage.

There are about 64,000 businesses in the state with fewer than 10 employees, and more than half of those don’t offer health insurance, according to surveys Stallings has seen. ‘‘Small companies are among the hardest to insure because of the administrative costs for groups that small,” Stallings said. ‘‘They can’t spread the risk around as much as larger companies can.”

To receive the premium subsidy, employers must establish a Section 125 premium conversion plan and purchase a wellness benefit, which promotes preventive care and includes a health risk assessment, as part of the health plan. Employers should first select a health insurance broker who will assist with the subsidy application process and selection of a health plan. The insurance company will bill the state for the subsidy and deduct that amount from companies’ premium bills.

The health care commission will host informational meetings for licensed insurance companies July 21 and 23 at its Baltimore office. The agency is also working with business groups to organize meetings for small companies.

More affordable medical insurance is among the top priorities for members of the National Federation of Independent Business, said Maryland director Ellen Valentino.

‘‘I believe many of our members will be able to qualify for it,” Valentino said.

If you go

Meetings for insurers on information about the new small-business program will be held from 9 to 10:30 a.m. July 21 and from 8 to 9:30 a.m. July 23 at the Maryland Health Care Commission, 4160 Patterson Ave., Baltimore. Registration: vwooding@mhcc.state.md.us. Information: 877-245-1762 or mhcc.maryland.gov⁄partnership.