· PROVIDES SMALL BUSINESS EMPLOYEES THE SAME ACCESS TO HEALTH BENEFITS THAT FEDERAL EMPLOYEES HAVE -- The Department of Labor will establish a Small Employer Health Benefits Plan (SEHB) similar to the Federal Employees Health Benefits Plan (FEHB). The Secretary shall widely disseminate information about SEHB through the media, internet, public service announcements and other employer and employee directed communications.
· ALL SMALL EMPLOYERS AND EMPLOYEES OFFERED COVERAGE -- All employers with fewer than 100 employees during the previous calendar year shall be eligible to apply for coverage under SEHB. Employers must offer coverage to all employees who have completed 3 months of service. Employees working fewer than 30 hours a week are eligible for pro rata coverage.
· USES STATE LICENSED INSURERS WITHOUT PREEMPTING STATE LAWS -- The Department annually shall contract with state licensed health insurers to offer health insurance coverage in a state. Participating insurers shall remain subject to state laws applicable to the states in which they cover residents.
· PROVIDES A MINIMUM BENEFIT PACKAGE SIMILAR TO FEDERAL EMPLOYEES -- All participating insurers must offer benefits equivalent to or greater than the options offered to federal employees.
· AFFORDABLE SMALL EMPLOYER PREMIUMS WITH PREMIUM ASSISTANCE –
o Employers joining SEHB must contribute at least 50% of premium costs.
o Employers with fewer than 25 employees shall be eligible for a coverage incentive discount of 5% to employers joining SEHB.
o In addition, small employers with fewer than 50 employees shall be eligible for a sliding scale premium subsidy for employees earning less than 200% of the poverty level (50% for firms under 10 employees, 35% for firms under 25 and 25% for firms under 50).
o Employee premiums for employees earning under 200% of poverty, adjusted for family size, shall be eligible for 100% subsidies for premium contribution over 5% of salary if not covered by another federal or state health insurance program.
o Up to $50 billion is authorized for appropriation to the Department to provide small employer health coverage subsidies in fiscal years 2004-2014 (in accordance with the FY 2004 Budget Resolution).
