Commentary: MEWA Combats Rising Health Insurance Costs for Businesses

By Guy Coviello
President and CEO of the Youngstown/Warren Regional Chamber

YOUNGSTOWN, Ohio – Every fall, when we hear the high school marching bands, see the wondrous foliage, root for our favorite football teams – all the things that remind us of autumn – employers deal with another tradition that is not so pleasant. They grapple with annually rising health insurance costs.

I was recently reading an article about 2025 health insurance cost projections in CFO.com, which addresses important trends, challenges and best practices for CFOs. According to the article, the average cost of coverage in the United States is expected to climb by 9 percent, surpassing $16,000 per employee.

This year, health insurance premiums jumped an average of 6.4 percent.

Here’s where the problem gets worse for employers: Because of the tight labor market, most employers will end up absorbing most of that increase rather than risk losing workers.

Here’s where the Youngstown/Warren Regional Chamber might deliver relief: Our Multi Employer Welfare Arrangement, or MEWA, is already saving hundreds of Mahoning Valley small businesses between 6 percent and 48 percent on their health insurance premiums and has unlimited capacity to grow.

We’re proud that we can help our Valley businesses turn that savings into investments into their own operations so that they can be more competitive, as well as pump more money into the local economy. We want to extend this help to many more local companies.

With the labor market here looking even tighter in the future, more of our members are asking for help offering health insurance for the first time. The MEWA is usually a perfect fit.

We are able to do this through the Southern Ohio Chamber Alliance (SOCA), an alliance of 129 chambers of commerce that in 2016 partnered with Anthem Blue Cross and Blue Shield to form the SOCA Benefit Plan. The SOCA Benefit Plan is a MEWA that offers predictable rates and competitive benefits usually reserved for larger groups. This means eligible businesses join together to share in the overall claims risk. By being part of a larger, self-funded pool, they have financial protection backed by Anthem’s stop loss coverage.

The plan is available to all employers that have two to 50 employees and sole proprietors with corporate headquarters located in Ohio who are members of the Regional Chamber. It’s a cost-effective alternative to traditional Affordable Care Act (ACA) plans, and, unlike other association health plans, businesses don’t need to be from the same industry or trade group.

To the best of our knowledge, SOCA operates the largest MEWA in the United States, and the Regional Chamber ranks No. 1 within SOCA. But there’s room to grow, room for more Valley companies to save money.

In addition to financial protection, this plan offers:

• Competitive rates.
• The stability of fixed, predictable monthly payments.
• A variety of plan options.
• Plan design offerings similar to familiar pre-ACA models.
• Popular dental and vision plans.
• Life and disability plans.

SOCA Benefit Plan options are not subject to the same mandates as plans offered under the ACA – requirements that can make ACA plans less affordable for small businesses. Yet, similar to ACA plans, coverage is offered to any and all eligible applicants regardless of health status.

As we approach the enrollment season, the Chamber and SOCA teams are ready to help our Valley businesses. Talk to your local health insurance broker to see if the SOCA Benefit Plan is a good fit for your organization. To request a quote, call 844-MED-OHIO or visit https://844medohio.com. Or contact Becky Litowitz at the Regional Chamber at 330-744-2131, ext. 1219, or [email protected].

Copyright 2024 The Business Journal, Youngstown, Ohio.