• In Focus: High-Risk Pools
• Businesses Say They Would Support Strategies To Increase Health Care
• Credit Scoring May Help Small Businesses Grow

In Focus: High-Risk Pools

Lack of federal funding for state-run health insurance plans may leave thousands more without coverage in fiscal year 2007, according to the Coalition for Affordable Health Coverage (CAHC). The CAHC makes health coverage policy recommendations. State-run high-risk pools, which are targeted to people who do not qualify for health coverage in individual markets, are particularly at risk. In these programs, participants are charged no more than 200% of the standard premium rate in that state, which is lower than the full-market rates they would otherwise pay. Federal grants have provided money to maintain current pools and jump-start existing ones, but these benefits must be extended again, says CAHC. Proponents of the program also argue that the pools moderate premium rates for the broader population seeking to purchase health coverage plans. At this time, thirty-three states have the pools. Businesses Say They Would Support Strategies To Increase Health Care A recent study by the policy journal Health Affairs found that employers are willing to participate in policy changes that would increase access to health care for the uninsured. The study found that respondents were supportive of coverage, whether or not they currently offered health benefits to their employees. The study surveyed 3,000 firms of all sizes. “It’s encouraging to see responses like this because it shows that people realize it’s a multi-level problem,” said Kristie Darien, executive director of the NASE’s legislative office. “It’s going to take cooperation of many different groups to help find something that works.” According to the study, employers covering more than two-thirds of the workforce said that all employers should contribute to the cost of health care, either by covering their own employees or contributing to a pool to cover the uninsured. Many firms show interest in the option to participate in government-subsidized health programs, especially among small-business owners and companies who do not currently offer benefits. Credit Scoring May Help Small Businesses Grow Credit scoring has long been used by banks to determine the risk on a consumer loan. Now, more banks are using the method on small businesses. A recent study by the Office of Advocacy of the U.S. Small Business Administration shows it may give small businesses a leg up on gaining access to credit. Organizers say it helps businesses who might not otherwise receive loans by using risk-based pricing, which allows riskier loans to be made to firms with little credit history. The study also showed that many lending institutions are moving towards the use of both owner and business credit scoring in loan decisions, especially banks in urban areas. “We hope to see more banks increase the number of loans they give to the self-employed and micro-businesses,” said Kristie Darien, executive director of the NASE’s legislative office. “Many businesses can do well if they’re just given some start-up funds.” For more information on the report, please visit http://www.sba.gov/advo.