Learn the Issues: Small-Group Market
What is the small-group market?
Colorado's small-group market guarantees health coverage for sole proprietors and groups of two to 50. Healthy individuals can obtain cheaper insurance in the non-business market, and some groups opt for guaranteed small-group plans only when they are unhealthy.
How does the small-group market affect the business community?
In 2006, 358,264 Coloradans were covered by small-group coverage.
Recent developments
Gov. Bill Ritter signed a bill June 1 that prohibits insurers from considering employees' health status when setting premiums.
Under House Bill 1355, sponsored by Rep. Anne McGihon, D-Denver, insurers can no longer give discounts or increase rates because of the health status of employees who work for a small business. The legislation affects employees who get insurance through the small-group market, which includes sole proprietors and businesses with 50 and fewer employees.
According to the Denver Business Journal, factions on both sides disagreed on whether rate banding is a problem or a solution to rising health care costs. The cost of health care is a chief concern of Colorado businesses.
Opinions also differed on whether high-risk policyholders should pay more for escalating medical charges or if the expenses should be spread over the general population.
The bill was opposed by some insurers and the Colorado Association of Commerce and Industry, who said the proposal will increase rates. The measure was supported by the National Federation of Independent Business, the Colorado Consumer Health Initiative, AARP, Rocky Mountain Farmer's Union and others.
Resources
Small group activity report, Colorado Division of Insurance