Senate endorses small business health insurance measure

By SARAH R. CRAIG

Associated Press



HELENA -- Some Montanans living without health insurance could find help with a measure tentatively approved in the Senate on Friday.



Lawmakers endorsed a bill calling for the state to help cover the costs of insurance premiums and creating a new purchasing pool to give small businesses more buying power.



Supporters said many Montanans are in dire need of help because they lack insurance coverage, with small businesses accounting for the bulk of uninsured employees in the state.



Although some Republicans criticized the plan as a step toward socialism and more bureaucracy, the measure was approved on a 37-13 vote.



Lawmakers voted down an amendment to delay implementation of the measure, saying the Legislature has dragged its feet long enough on helping citizens cope with the high costs of health insurance.



"We have gone so slow in the past that people have died," said Sen. Jim Elliott, D-Trout Creek. "That's how slow we've gone."



The bill, a flagship initiative of Gov. Brian Schweitzer and state Insurance Commissioner John Morrison, cleared the House in late March.



It would spend $11.5 million a year to help employers with two to nine workers, provided none of the employees are paid more than $75,000 annually.



About $4.6 million would cover the costs of income tax credits for businesses that already provide coverage for their employees. The credit would be limited to half the premiums an owner pays. Additional credit would be available for those who also cover workers' spouses and children.



The remaining $6.9 million would be available to help pay premiums for employees who work for small businesses that do not offer insurance and to assist owners who choose to begin providing group coverage.



The bill also creates a new purchasing pool intended to give small businesses mass buying power that would qualify them for lower insurance rates.



Money for the program comes from an increase in tobacco taxes mandated by a voter-passed initiative last fall.



House Democratic Leader Dave Wanzenried of Missoula sponsored the bill.



Opponents in the Senate urged lawmakers to slow down with the program. They warned that funding the program with tobacco taxes, which are expected to decline, could lead to the state pulling funding years later when people are relying on the program.



"It's awful hard to tell a group of employees that they're not going to be able to have insurance once you've offered it to them," said Sen. Duane Grimes, R-Clancy.