A number of Texas Chambers of Commerce have followed the lead of a few New England cities and have begun to form health insurance co-ops to make health insurance affordable for small businesses.

In the southeast portion of the state the Greater Beaumont, Greater Port Arthur, Greater Orange, Port Neches, Nederland and Vidor chambers of commerce and Texas Coalitions Inc. have teamed up to create the Small Business Health Coalitions Program.

The idea for the coalition began with a 2002 Texas Comptroller’s Office study that found insurance carriers can charge businesses with fewer than 50 employees as much as 20 percent in extra costs, according to a coalition spokesman.

The state legislature responded and passed House Bill 897, which allows two or more small businesses to join together in order to reduce those costs and pay the lower premiums that are available to large companies.

Texas Coalitions initiated the state’s first such coalition in Austin after the law became effective in 2003. More than 60 businesses joined the program, almost half of which could not previously afford insurance.

According to Texas Coalitions member Rob Mullen, the Austin group now annually saves a combined $305,000 in premiums. “The uninsured is a real problem in Texas and you’re helping address that by making premiums affordable,” Mullen said. “Just think of a small business saving $10,000 a year.” More than 30 chambers across Texas now participate in similar coalitions. After enough businesses form a coalition, it takes between 60 and 90 days for coverage to begin.