Saving You Money For Life

Governor Mike Huckabee has announced a new health insurance support program inaugurated by the state that will allow small business owners and their employees better access to medical coverage. Currently only 29 percent of small businesses offer health insurance because the cost is too high.

The plan, called ARHealthNet, offers affordable medical benefits to those adults who work for a small business that hasn’t offered health care coverage in the past year or longer. The plan utilizes federal money and state funds from the state’s tobacco settlement to subsidize the cost of insurance for small-business owners’ lower-income workers. Lower-income workers will have to have an annual household income of 200 percent of the federal poverty level or less. These individuals will be subsidized, while it will be up to the employer to provide a standard health insurance program to the remaining employees.

Huckabee said he wasn’t sure what the cost of the program will be for the state, but that it could fall between $20 million and $30 million. Capacity for the program is limited to 15,000 people until September 2008. After that, it will be expanded to 80,000 people.

The cost for the small businesses will vary from $30 to $300 per month for each employee, depending on the employee’s income and number of dependents. Employees will share the costs by paying deductibles, co-payments and possibly some premiums.

The Arkansas Health Department has had the plan in development stage for five years. It is another example of a ‘safety net’ being developed for working people of modest means. Huckabee did note, however, that the program has its limits. Covered employees will receive six doctor visits a year and seven inpatient hospital days per year.

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