Senator Onorato Joins With Minority Colleagues In Pushing Proposal To Lower Insurance Costs For Small Businesses

State Senator George Onorato (D-Queens), the ranking Minority member of the Senate Committee on Insurance, has joined with a number of his Senate Minority Conference colleagues in co-sponsoring new legislation aimed at helping small businesses better afford the cost of health insurance for their employees.

Under the bill, a small business insurance pool would be created to allow small firms to group together and buy insurance at a lower rate through a state-negotiated plan. The proposal would aid businesses with at least two and up to 100 employees. The plan would supplement New York’s existing Healthy New York program, which helps to provide health insurance for businesses within certain income limits which employ up to 50 workers.

"Small businesses are in many ways the backbone of our economy," said Senator Onorato. "But the rising cost of insurance has made it difficult if not impossible for small firms to purchase and offer coverage to their employees. Since the year 2000, American health insurance premiums have increased 55 percent, and this has disproportionately affected small businesses. In New York, only 49 percent of firms with fewer than 100 employees offered access to employer-sponsored health insurance."

The new legislation would establish a Small Business Insurance Board (SBIB) that would be able to enter into contracts with carriers to provide health benefits coverage to small firms. The SBIB would determine the health benefits coverage to be made available, establish rules for participation in the insurance program, and otherwise administer the plan.

"While Healthy New York has certainly had some impact in helping small employers afford insurance, many small firms seeking aid have had either incomes or a workforce above the eligibility limits," said Senator Onorato. "This new program seeks to close this gap in coverage opportunities, level the playing field for small businesses, and help -- overall -- to ensure a healthier business climate and workforce in New York State."