The Providence Business News is reporting that Rhode Island’s Gov. Carcieri has announced a plan to establish a $100 million trust fund for small businesses to purchase health insurance for employees and a $20 million bond to create a health information network.SelectCare, the proposed product option for small businesses, would be designed to focus on primary care, prevention and wellness; provide protections from the cost of catastrophic illness; encourage the use of evidence-based, quality care; and provide management of the chronically ill.
The SelectCare funds aim to provide premium relief for eligible employers and individual participants in the form of an insurer risk share arrangement, with a focus on those most at risk for being uninsured: low-wage small businesses, their employees, and individual enrollees.
It is estimated that 27,000 Rhode Islanders would enroll in the SelectCare program, and about one-fourth would benefit from the SelectCare market incentive program. The new plan design, combined with the risk sharing pool, is expected to reduce premiums by approximately 20 percent.