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Health Insurance Plan Targets Family Firms

Posted on: Thursday, 10 November 2005, 00:00 CST

By Carly Harrington, The Knoxville News-Sentinel, Tenn.

Nov. 9--The Steimer family has good reason to be interested in a group health insurance plan unveiled Tuesday by the Family Business Institute of East Tennessee.

The family's companies, Master Custom Built Homes and Master Remodeling, probably wouldn't have survived the $500,000 worth of medical expenses Chuck Steimer recently incurred if he wasn't insured through a previous employer, said his daughter, Dawn Steimer.

"It's a big deal to family businesses because there's no big daddy holding you up," Dawn Steimer said at a breakfast announcing the new plan.

"When you offer something like this that's guaranteed, it opens up the options." Plus, every business wants to attract and retain high-quality employees. "If we can offer insurance, then we'll have an edge."

The Family Business Institute, a nonprofit group serving companies from Chattanooga to the Tri-Cities, will act as an umbrella for members who want to enroll in a group plan administered by Insurance First Inc.

"We wanted to bring some added value to our membership. What we thought would affect their pocketbooks the most is health insurance," said Ed Seaver, the institute's executive director. Many family-owned businesses, which are typically small or mid-sized, want to provide health insurance but can't afford it. Dawn Steimer said health care coverage is a problem, "especially as you age."

The plan will give businesses an opportunity to provide those benefits the same way big businesses do, Seaver said. Everyone who applies for coverage will be eligible regardless of an applicant's health status. That means there is no medical underwriting and no examination, Seaver said. "There's no mystery to this. If you're a member, you are automatically eligible to enroll," Seaver said. The institute will be joining an existing pool of more than 18,000 people from a mix of industries located primarily in Florida as well as in Arizona, said Hazen J. Mirts, president of Insurance First. A full menu of options will be available through Aetna, including health maintenance organizations, preferred provider organizations, point-of-service plans and health savings accounts, Mirts said. The program will be ready for members of the institute in two to three weeks. Rates are being negotiated, Mirts said.

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Copyright (c) 2005, The Knoxville News-Sentinel, Tenn.

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Source: The Knoxville News-Sentinel

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