Edwin Fonner,
Jr., DrPH
Underlying Problems. The lack of affordable health insurance for over 10 percent of Kansans under age 65 is the problem motivating this coverage expansion initiative. Most uninsured Kansans are employed and over 25 percent of small employers report not offering coverage to employees and dependents. Increasingly, small employers are experiencing double-digit premium increases or are losing coverage because carriers are exiting from the marketplace. Groups least likely to have coverage include Hispanics, African Americans, younger people, females, part-time workers, and lower income employees especially in southwestern Kansas and inner cities. While many firms want to offer coverage “because it’s the right thing to do,” many don’t because they can’t get affordable coverage or are struggling to maintain profitability. There is an increasing trend to reduce benefits, increase employee cost sharing, and increase deductibles. There is a need to educate insurance agents and small groups. Medicaid is not an option for many since Kansas has one of the lowest income qualification levels in the U.S.
Defining the Target Population. The Kansas Business Health Partnership Act defines the target population as lower-income workers in small firms across the state of Kansas that do not offer health insurance coverage to employees and their dependents. HPBA will quantify this target based on the size and characteristics of organizations qualified to enter the subsidy program. HPBA will also begin an education and outreach effort to qualified firms and key groups influencing program enrollment. Insurance broker/agents, small employers, business groups (e.g., Chambers of Commerce), and insurance associations will comprise target groups for outreach, education, and marketing.
The primary objective of HPBA is to develop an innovative, affordable health insurance benefits package for small business and their lower income uninsured workers. This work is being carried out with the guidance of a statewide public/private partnership. Currently, the primary source of funding is the six-month grant from RWJF. While funds are sufficient to retain expert management and begin the design of a benefits package and premium subsidy program, several activities require supplemental funding. Two such activities are the basis for proposed work with Sunflower Foundation funding:
Objective One – Conduct outreach efforts to educate broker/agents and other key organizations about the features of HPBA and the premium subsidy program. Effective education underpins successful marketing and customer service. The outreach effort will identify “early adopters” and provide feedback from the marketplace that is necessary for sound program design.[Back to Main Page]Objective Two –Simulate operations with a group of clients to “shakedown” program administration. The only real way to identify inefficiencies and enhance operations is to test critical elements of the program. We are proposing to use Sunflower Foundation funds for a test of program operations. This will include premium subsidies for one or more groups helping us “beta test” operations.