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Federal Government Approves OK Health Plan for Small Business

Posted on: Monday, 3 October 2005, 21:00 CDT

By Janice Francis-Smith

Several small businesses in Oklahoma will soon receive help in offering their employees health insurance, now that the federal government has approved the Oklahoma Premium Assistance Plan. But some say the plan doesn't do enough.

This program will provide a great shot in the arm to small business owners across Oklahoma, said Gov. Brad Henry. Many companies want to provide health coverage to their employees, but because costs are so high, they just don't have the financial resources to pay the premiums. This program will help them bridge the gap and give employees the coverage they need.

Oklahoma employers with 25 for fewer workers are eligible to apply for the program, to aid workers with household incomes at or below 180 percent of the federal poverty level (which is $35,797 for a family of four). Under the assistance plan, the employer contributes 25 percent of the health care insurance premiums, the worker pays up to 15 percent, and the state and federal government pay the rest. Employees would be responsible to pay for deductibles and co-payments.

The plan will not only help to improve the health of Oklahomans, but has a positive effect on the economy, said state Sen. Tom Adelson, D-Tulsa, chair of the Senate Appropriations Subcommittee on Health and Human Services.

Having access to affordable, quality medical care will make workers healthier and more productive, said Adelson. A more productive work force means a healthier bottom line for small businesses.

The Oklahoma Health Care Authority will begin taking applications Nov. 1 for the Oklahoma Employer/Employee Partnership for Insurance Coverage, or O-EPIC, for which the agency has already received more than 2,000 inquiries.

With $50 million in state funds appropriated to the program, which will be matched with $100 million in federal funds each year, O-EPIC is expected to enroll between 50,000 and 70,000 Oklahomans when fully operational. While that's a start toward reducing the high percentage of Oklahomans that are currently uninsured, it's not as much as was originally promised to voters, said Oklahoma House Speaker Todd Hiett, R-Kellyville.

When voters approved State Question 713 in November, they approved an increase in the tobacco tax. The revenues from the increased tax were designated to pay for the premium assistance plan and other health care initiatives. However, revenues from the tax increase have failed to meet projections each month since the increase went into effect in January.

Hiett and other Republicans have criticized the tobacco tax plan, which they say is plagued by loopholes that give Indian tribal smoke shops a huge price advantage over state tobacco retailers.

Although this program will help many Oklahomans, it is expected to benefit only a fraction of Oklahoma's insured, said Hiett. Governor Henry originally claimed the program would help up to 200,000 uninsured Oklahomans, but the tobacco tax shortfall means that only 50,000 to 70,000 are now expected to receive help.

Source: Journal Record - Oklahoma City

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