Illinois Governor Pat Quinn recently signed into law Senate Bill (SB) 2885 to allow more small businesses to find affordable health insurance through healthcare purchasing groups (HPGs). The legislation, which takes effect January 1, 2013, clarifies the definition of employer under the Health Care Purchasing Group Act to include sole proprietors and to raise the limit on covered employees from 500 to 2,500.
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Get Your Report Now!According to Senator Kwame Raoul, who sponsored the legislation, small businesses that offer group health insurance pay an average of 18 percent more in premiums and 25 percent more in administrative costs than larger companies. “This legislation helps level the playing field so that small and medium-sized businesses can compete and grow,” the Senator said.
SB 2885 also stipulates that an HPG must use a licensed insurance producer to negotiate and enter into health insurance contracts. The legislation was an initiative of the Chicagoland Chamber of Commerce and supported by the Illinois Chamber of Commerce, the National Federation of Independent Business, the Illinois Public Interest Research Group and the Illinois Department of Insurance.
“Purchasing groups have a history of providing superior care at competitive prices in Illinois and other states,” said Senator Raoul. “I want to expand this option at a time when we desperately need to make our state more business-friendly while also making it a great place to work.”