Beginning in January, all individuals and businesses with fewer than 50 employees will be required to use the state’s new health care exchange if they want to purchase insurance. Enrollment for these policies begins on October 1. As this deadline approaches, there are a number of businesses that feel overwhelmed by this new system.
It’s a busy morning at Bolduc’s Auto Salvage in Middlesex. Trucks of all sizes are lined up to be weighed on a scale that stretches 60 feet. The trucks are loaded with all types of metals.
Kim Bolduc owns the business with her husband. A large, faded blue pick up truck carrying dozens of pieces of scrap metal, eases its way onto the scale.
“So they’re calculating the weight of this scrap metal material that they’re bringing in which then they will be paid for,” said Bolduc.
The business has 10 full-time employees - one person has worked here for 35 years and the average length of employment is 10 years.
The business currently offers a high deductible policy but none of the employees participates in the program because they all have better coverage through their spouses. As a result, Bolduc and her family members are the only people on the policy.
Bolduc says this situation raises a number of questions as the business considers how, and if, it wants to continue to offer coverage through the new state exchange.
It is much more of a true family business and so being able to maintain the workforce that we have whether it means offering insurance or not is the biggest consideration - Kim Bolduc - co-owner of Bolduc Auto Salvage
She wants to do the right thing for her workers and avoid unintended consequences as she reviews her health care options.
“These are not just employees,” said Bloduc. “It is much more of a true family business and so being able to maintain the workforce that we have whether it means offering insurance or not is the biggest consideration.”
When all is said and done, Bolduc says her decision about whether to provide health care coverage to her employees hinges on the answer to several questions: "How does it affect employees, both current and future? How does it affect the financial business bottom line and how does it affect us personally as business owners?”
The summer is a very busy time for her business and Bolduc doesn’t have much time to study the complexities of the new health care system before the October sign up begins.
She’s heard about a state program where experts make on site visits to help businesses understand their options. She says she’s definitely signing up for this program.
“I think that’s going to be the most efficient time frame. I feel like let’s get the experts in and have them explain it to me.”
A lot of small businesses share Kim Bolduc’s concerns. Darcy Carter is the District Director for the U.S. Small Business Administration. Carter says her group is directly involved in outreach efforts to the small business community.
“It’s pretty apparent that most of the small businesses that we’ve met, I’m talking very small a handful of employees, haven’t had enough information yet aren’t quite sure what their responsibilities is what the deadlines are, does it affect them ?” said Carter.
Robin Lunge is the director of Health Care Reform for the Shumlin Administration. She says these outreach efforts are essential if the business community is going to feel confident about entering the state’s new health care exchange.
Lunge says the state hopes to have 250 people out in the field in the next few weeks to help businesses like Bolduc’s.
These health care experts are known as “navigators” and Lunge says they’re being sponsored by a number of groups including the Vermont Chamber of Commerce, and a network of regional Community Health Centers.
“We fully expect that many of the navigators organizations will go out and meet with businesses and their employees as we get closer and closer to enrollment,” said Lunge.
Bolduc is worried that her business will be assessed a penalty if their employees continue to turn down the company’s health care offer – opting instead to get coverage through their spouses. But Lunge says there will be no penalty because the state assessment is imposed only on companies that fail to offer coverage.
“The requirement is that the employer offer to contribute to health coverage,” said Lunge. “So if they offer to contribute to health coverage but their employees are covered elsewhere they’re not subject to that assessment.”
Lunge says the state is unveiling a massive public education campaign in the coming weeks and she’s confident that businesses and individuals will have the information they need to make informed choices about their future coverage.
Kim Bolduc is hoping that Lunge is right because she still has a lot of questions about how this new law is going to work.
