Insure Montana is a joint initiative of Governor Brian Schweitzer (D) and State Auditor John Morrison, administered by the State Auditor's Office, that uses two different mechanisms to assist small businesses of two to five employees afford the cost of health insurance.
Tax Credits: Qualifying small businesses that are currently providing health insurance to their employees are eligible for refundable tax credits. About 600 businesses will be served under the tax credit aspect of the initiative for the first round of funding, totaling approximately 2,200 lives. Approximately 40 percent of the available Insure Montana funding per year is designated for the Employer Tax Credit. Funds are distributed on a “first come-first served” basis
Purchasing Pool: For qualifying small businesses that previously have been unable to afford health insurance for their employees, Insure Montana provides a monthly assistance payment for both the employer’s and the employee's portion of the health insurance premium. This assistance is available to small employers who have not offered insurance in the past. About 60 percent of available funding is designated to finance these Employee Assistance Payments and Employer Premium Incentives. Under this program, funds also are distributed on a “first come-first served” basis.
The insurance product under this program is available through one of the two Blue Cross Blue Shield of Montana plans offered by the State Health Insurance Purchasing Pool or through a qualified Association Plan. The size of each employee's Premium Assistance Payment is determined by Insure Montana staff, based on a formula approved by the Insure Montana Board of Directors.
Under the purchasing pool program, an employee must pay, before the state Employer Premium Incentive payment, at least 50 percent of an employee-only policy. The Employer Premium Incentive payment pays the employer up to 50 percent of the employer’s contribution for each covered employee. Each employee receives a monthly Premium Assistance Payment with amounts ranging from 20 percent to 90 percent, based on a sliding scale tied to the employee’s annual family income.
The Insure Montana purchasing pool has been operating since January 1, 2006 and is currently providing coverage to 170 businesses (about 750 Montanans). Insure Montana staff estimates that funding will serve approximately 650 small businesses in this funding cycle.
More information is available on the Insure Montana website.
