Blog #85: How to keep health insurance affordable for small business
The Supreme Court’s ruling on the Affordable Healthcare Act was clear: it is up to the American citizens to fix runaway health care costs. What can we do?
I have always believed the insurance rates my company pays would be lower if I could shop across state lines for health insurance. Why? Competition drives down costs.
Currently, each state establishes health insurance requirements and approves each health insurance company and the plans they offer. An insurance company and plan approved in New Mexico cannot be sold in Colorado or Arizona.
What can we do?
New Mexico and the surrounding states can work together in the same fashion they work together for allowing professionals to practice their profession across state lines without extensive certifications.
Sounds easy. Hard to implement.
Start by seeking states with similar health care insurance requirements. Texas would not be a good partner because their medical malpractice limits are far different than ours. But Colorado, Arizona and Utah could be.
Reconciling insurance differences between New Mexico and those states most likely will require legislative action. Once we align health care insurance requirements, each state may then pass legislation that allows for reciprocity.
It will be a lengthy and complicated process. But the goal is worth the time and trouble. With the ability to shop for insurance regionally, small businesses like ours can compete with larger companies in the region.