BUSINESSWEEK ONLINE : JULY 10, 2000 ISSUE
FRONTIER -- FEATURES

Remedy #5: Consumer Choice Health Purchasing Group


HOW IT WORKS: Small companies pay a nominal fee to join an alliance sponsored by state governments or created by nonprofits. Employees gain access to a wider selection of health plans than the companies could provide on their own.

WHO IT'S FOR: Attractive for companies with 2-10 employees.

WHERE IT'S OFFERED: North Carolina, California, Colorado, Connecticut, New York, Ohio, Utah, Washington, Oregon, and Kansas. Under development in Wisconsin, Florida, Montana, and Michigan.

WHAT'S GOOD: Lets you offer a wide choice of insurance plans without administrative hassles or extra cost. Employees who want more than a basic plan can opt to pay extra.

WHAT'S NOT: In most states, the groups aren't able to get group discounts. (In a few states such as California, where discounts are allowed, you might save a couple of percentage points on premiums.)

WHERE TO GO: Try the Institute for Health Policy Solutions' Web site (www.ihps.org)



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RELATED ITEMS
The Health Care Crisis

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TABLE: Remedy #1: Medical Savings Accounts

TABLE: Remedy #2: Self-Funding with Stop-Loss

TABLE: Remedy #3: Split Funding

TABLE: Remedy #4: Association Health Plans

TABLE: Remedy #5: Consumer Choice Health Purchasing Group

CHART: Who's Covered

Commentary: Search for a Cure



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