States are ‘aggressive experimenters’ with small business coverage

Of the 47 million Americans without insurance, at least 20 million of them are self-employed or work for a small business. And that number has increased by about 500,000 a year since 2000. (Source: “Small Business Is Latest Focus in Health Fight,” New York Times, July 10, 2008) .

In recent years states have been taking the lead on the issue, attempt different approaches to help small business obtain affordable coverage for their employees. For example, Arizona is extending tax credits to small employers, New Mexico and Montana are considering allowing small business to band together to receive better rates and Colorado has passed laws limiting how much insurance companies can charge small businesses.

“States are being aggressive experimenters, and those lessons learned are going to be invaluable to us in looking at national health reform,” said Michelle Dimarob, manager of legislative affairs for the National Federation of Independent Business.