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| Home > News > 2005 News |
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A health insurance first in Southwest Missouri
Nov. 11, 2005
After a competitive bidding process, the Southwest Area
Manufacturers Association has chosen Mercy Health Plans to provide health
insurance coverage to 32 of its member organizations utilizing an innovative
association health plan model.
As opposed to other association health plans, the SAMA I Health Care Consortium
was viewed by insurance providers as one employer group with a uniform plan
design and rate structure.
The arrangement required permission from the Missouri Department of Insurance to
allow SAMA, Jenkins & Associates Insurance Consultants and Mercy Health Plans to
provide a health insurance plan available to both the small (3-25 employees) and
larger manufacturing companies within the SAMA organization. The consortium
includes 2000 covered lives.
One result is, six companies are now able to offer health insurance to employees
that were not able to previously.
News media are invited to attend a reception from 4 –4:45p.m. Nov. 14, 2005 at
St. John’s Hammons Heart Institute Multipurpose Room, with participating members
to learn more about this unique arrangement.
Mercy Health Plans along with Jenkins & Associates has offered health coverage
to this type of association in Missouri since the first public association was
created in 1997. Since that time, Jenkins & Associates has spearheaded the
development of five additional public associations insuring a total of 83 school
districts across the state. SAMA represented a great opportunity for Jenkins &
Associates to bring this proven successful model to the private sector; however,
this transition did not come without hurdles.
The Small Employer Health Insurance Availability Act prevents small employers
(3-25) from being included in such consortiums. Under the waiver, the Missouri
Department of Insurance suspended a requirement about premium restrictions for
two years and will evaluate the arrangement’s effectiveness at that time.
According to Congressman Roy Blunt, this agreement could also be important
nationally. "Health care costs are an important consideration for every business
big and small. Small businesses should be allowed to pool their employees in a
common insurance plan in order to provide a lower cost model for controlling
health care costs,” said Blunt. “The consortium of the Southwest Area
Manufacturers Association will be closely watched as a national model to show
how association health plans can provide cost savings and access to health care
coverage not only in Missouri, but across the country. I am hopeful that their
efforts will be successful."
SAMA has been seeking answers to rising health care costs -- one of the top
priorities for every manufacturer to attract and retain a qualified workforce.
The SAMA I Health Care Consortium, comprised of 32 member companies representing
approximately 1300 employees, provides the opportunity for long-term rate
stability for health care costs. Membership in SAMA is open to all manufacturers
in Southwest Missouri, and after evaluation of this effort a second health care
consortium may form. However, to participate, companies must be SAMA members at
least 6 months.
SAMA was founded in 1993 to represent manufacturers in Springfield and the
surrounding area. SAMA has matured into an influential association advocating
for the interests of all members before government policymakers. In September
2002, SAMA broadened its focus as its members voted unanimously to open
membership to manufacturers throughout Southwest Missouri and today includes
more than 120 members representing nearly 10,000 jobs.
For more information, contact St. John’s Media Relations at 417-820-2426,
Southwest Area Manufacturers Association at 417-863-7476, or Jenkins &
Associates at 417-886-8986. |
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