April 12, 2005

SMALL BUSINESSES TO BENEFIT UNDER ROMNEY HEALTHCARE PLAN

Plan links small business owners and employees to affordable health insurance

NORTHBOROUGH – Meeting with the small business owners of an automotive repair shop, Governor Mitt Romney today promoted his healthcare plan as a way to help small employers offer a comprehensive benefits package to their employers at an affordable rate.

“High health insurance costs are making it impossible for our small business owners to provide a reasonably priced healthcare plan to their workers,” said Romney, meeting with Rick and Linda DeWolfe, who own DeWolfe and Sons Auto Repair.

“We are committed to developing an affordable product for small business owners who want to do the right thing by their employees, but can’t keep up with the cost,” Romney added.

Last week, Romney filed legislation that opens the door to affordable health insurance products costing approximately $200 a month for an individual, compared to the current $350 average in the small group market and $500 in the non-group market. A family plan will cost about $500 a month under Romney’s plan, compared to $750 for small group insurance and $1,100 for a non-group product.

Rick and Linda DeWolfe would like to extend health coverage to their employees, but cannot because of skyrocketing healthcare costs. Up until three years ago, the small business offered subsidized health insurance to their workers, but stopped when the price tag exceeded $30,000 a year.

To cover themselves and their children, the couple pay $887 per month for a non-group healthcare insurance plan from Blue Cross/Blue Shield. Under Romney’s plan, the owners of DeWolfe and Sons Auto Repair could access a plan with better benefits at a much lower cost for themselves and their employees.

The DeWolfes welcomed Romney’s proposal. Linda DeWolfe said, “As a small business, we desperately need an affordable healthcare option that will allow us to remain a successful, family-run operation.”

The couple also noted that in an industry that typically experiences high turnover and absenteeism, it is difficult to find and retain good workers. The ability for small business owners like the DeWolfes to offer a low-cost healthcare plan will help entrepreneurs in Massachusetts attract dedicated and talented individuals.

Another important feature of Governor Romney’s plan is the creation of the Commonwealth Care Exchange, which allows the uninsured to use pre-tax dollars for the payment of premium costs. Depending on income, the exchange will allow families and individuals to save an additional 15 to 30 percent off their insurance bill. Using pre-tax dollars will enable working individuals to purchase the new plans for an effective cost of between $134 and $160 a month, or around $350 a month for a family plan.

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