INSURANCE: Members can now participate in plan set up last year for nonprofits.

By ELIZABETH BLUEMINK
ebluemink@adn.com

Published: February 24th, 2010 09:36 AM
Last Modified: February 24th, 2010 09:36 AM

Amid spiraling health care costs, Alaska's small businesses have a new health insurance option this year.

A health insurance plan created more than a year ago for Alaska nonprofits is now being extended to private employers, the Alaska State Chamber of Commerce and the Anchorage-based Foraker Group announced Tuesday.

The approximate 500 members of the state chamber -- ranging from repair shops to tug boat and tour operators -- can now apply to join the Foraker-created plan and offer health benefits to their workers.

In expanding the plan to potentially thousands more participants, officials from the state chamber and Foraker said they hope to make health insurance more affordable for Alaska's small employers -- many of whom can't afford it but wish they could because it would help them attract and retain good workers.

State and federal data shows that most small businesses in Alaska and elsewhere in the country do not offer health insurance to their workers.

"My future goal is to offer some sort of health insurance to my managers, but the reality is I could probably only afford dental or vision," said Michelle Novy, who owns the Run to the Sun Tanning Salon and Resort Boutique in Midtown Anchorage.

She said it hurts her business growth potential to not be able to offer the insurance. "If you can offer it, that's how you attract the best employees," she said.

NOT CHEAPER ... YET

For now, the plan offered by Foraker, which supports the state's nonprofits, isn't cheaper than the health insurance options already available to Alaska businesses.

Its key difference from other options is its major focus on keeping those costs in check by encouraging healthier lifestyles among workers. By using a similar approach over the past 17 years, the city of Juneau has been able to provide its workers some of the most affordable health insurance premiums in the state, according to Foraker.

The potential for further cost savings will increase significantly as more employers use the plan. Once the insurance covers roughly 1,000 people, Foraker will have the option to create group rates. For now, the pool remains small. About 30 nonprofits around the state, with 400 employees, participate.

One nonprofit employer pleased with the plan so far is Kathie Wasserman of the Alaska Municipal League, which lobbies on behalf the state's local governments. The AML has five employees.