Arkansas Business

1

• Arkansas Business
• and
• University of Central Arkansas
• Co-Sponsors of Symposium
• Benefiting Arkansas Health Issues for Employers
• May 7, 2008

2
Health Insurance Purchasing Group History

• Process started 7 years ago - 2001
• Arkansas Legislature passed a Health Insurance
  Purchasing Group act (HIPG) in 2001 designed for
  small business (1 to 99 employees)
• Legislation amended in 2005 to include up to 199
  employees
• Chamber Alliance Program or CAP name given to
  purchasing group
• NLR CAP started on November 1, 2004
• As of March 1, 2008 there are over 1,800 covered
  lives.
• Over 24 of these lives had no insurance before
  the CAP.

Offered Statewide by 50 Chambers of Commerce -
2008
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Chamber Alliance Program Highlights

• Group health and Groups of One plans available
• Eligible members of the chamber
• Programs available through local independent
  agents who are members of a participating chamber
• Premium savings to employer and employee
• Program designed to cushion future rate increases
• HSA (Health Savings Account) and HRA (Health
  Reimbursement)
• Retain your chamber membership keep coverage

Offered Statewide by 50 Chambers of Commerce -
2008
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Participating Chambers

• Heber Springs
• Hot Springs
• Jonesboro
• Lincoln
• Maumelle
• Mayflower
• Monticello
• Morrilton
• Mountain Home
• Mountain View
• Nashville
• Newport
• North Little Rock
• Osceola
• Ozark
• Prairie Grove
• Rogers-Lowell
• Russellville

• Arkadelphia
• Ashdown (Little River)
• Batesville
• Benton
• Bentonville/Bella Vista
• Booneville
• Blytheville
• Bradley County (Warren)
• Bryant
• Cabot
• Calico Rock
• Camden
• Clarksville
• Clinton
• Conway
• Cross County
• El Dorado
• Eureka Springs
• Fairfield Bay

Offered Statewide by 50 Chambers of Commerce -
2008
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QualChoice - QCA

• All state mandated coverages apply including
  maternity
• Groups of One - Accept or decline basis
• No carve out groups
• Retirees not eligible

Offered Statewide by 50 Chambers of Commerce -
2008
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CAP Plans

• High Deductible Health Plan HDHP
• No co-pays meets federal guideline
• Health Saving Account (HSA) qualified
• Health Reimbursement (HRA) qualified
• Wellness coverage
• Preferred or Flex Plan
• PCP co-pays
• Specialist co-pays
• 80/20 co-insurance
• ER co-pays
• Drug card no deductible

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Participation Guidelines

• Number of employees
• 2
• 3-4
• 5-8
• 9-10
• 11-49
• 50 plus
• 100 of all full time employees have to have
  GROUP coverage (Spouse, Military or Medicare)
  somewhere. If not, then they must be placed into
  the CAP plan.

• Participation Required
• 2
• 3
• 4
• 5
• 50
• 50
• Full time is defined as 30 hours or more a week.

Offered Statewide by 50 Chambers of Commerce -
2008
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Success Stories

• 12 person group looked 2 years for affordable
  plan
• 40 person group only 19 covered by old plan.
  CAP covered everybody and saved employer over 5
  figures a year in premiums
• Manufacturing company was able to offer every
  employee insurance
• Over 40 groups of one in the plan
• 24 of covered lives had no insurance before CAP

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CAP Benefits

• Sole proprietorship eligible for group rates
• Choice of multiple deductible plans for the
  employer
• Choice of multiple deductible plans for the
  employee
• More affordable premiums
• Preventive care program
• Members of a larger purchasing pool at renewal

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Other CAP Programs Now Available

• Voluntary Dental Coverage Delta Dental
• 100 coverage on preventative services
• No waiting period
• 1500 annual max benefit per person
• 40 deductible max of 3 per family
• Current Delta groups of 10 or more not eligible
• Will cover a group of one.
• Short term and Long term Disability
  Unum/Provident
• Groups of 2 or more
• Underwriting considerations
• Lump Sum Cancer Plan
• Composite rates premium savings to chamber
  members
• Long Term Care Coverage
• Met Life
• John Hancock
• Gen Worth