New Hampshire House passes bill to create plan to lower insurance premiums for small businesses

The New Hampshire House on Wednesday voted 259-93 to approve a bill (SB 540) that aims to lower health costs for employees of small businesses, the Manchester Union Leader reports.

The bill follows a recommendation by Gov. John Lynch's (D) Citizens Health Initiative, which was charged with developing a new health insurance plan by fall 2009 that will save businesses with 50 or fewer workers an estimated 15% on health costs.

The plan -- called HealthFirst -- will be priced at 10% of the state's median wage, or approximately $262 per month. The plan would include a cap on out-of-pocket medical expenses. According to the Union Leader, if one insurer agrees to offer the plan, then all insurers with 1,000 or more policyholders would be required to offer it as an option to all small businesses. In addition, an advisory committee of lawmakers and small employers would be required to update the plan every three years.

The bill also calls for the committee to finish the plan and make it available to residents by Oct. 1, 2009. According to the Union Leader, the bill would make it illegal for an insurer to offer a similar plan "aimed at undercutting the HealthFirst plan." The bill now goes to the state Senate, which approved an earlier version of it in March (Fahey, Manchester Union Leader, 5/7).