Riverside Health System, based in Newport News, Va., will contribute $1 million to fund a health insurance program covering 1,500 to 2,000 low income, small business employees.
About 15 percent of Virginians, nearly one million people, don't have health insurance. Two-thirds of the uninsured are in working families, many of which are employed by small businesses that can't afford to offer health insurance.
Over the past year, Riverside has been seeking innovative solutions to decrease this number.
"Paying for health insurance is particularly difficult for small businesses that often employ lower income workers," said Marilyn B. Tavenner, state Secretary of Health and Human Services. "That's why Governor Kaine tasked his Health Reform Commission with providing recommendations to cover more Virginians."
The 2007 Governor's Health Reform Commission Final Report defined "low-income workers" as those earning less than 200 percent of the federal poverty level. It proposed a "Three-Sharing Financing Model," in which employers, employees, and the Commonwealth would contribute toward monthly health insurance premiums.
Riverside stepped in when a pilot program stalled in the General Assembly.
The new program, titled Riverside Share, will begin this fall. It will provide premium assistance to low-income workers in small business of two to 50 employees that have not offered health insurance in the last six months.
"We are really excited that Riverside has stepped in and established this demonstration," Tavenner said.
Riverside will provide $1 million over two years to the program, with funding set based on the Foundation paying 1/3 of the monthly premium for an average Anthem Blue Cross and Blue Shield HMO contract. Anthem will partner with Riverside to provide the insurance plans.
"We have developed a voluntary, market-based solution that does not cost the Commonwealth anything," said Rick Pearce, president of the Riverside Health System. "The idea is to make available to those employees of small businesses earning less than the federal poverty level the same benefits as those who are fortunate to have health insurance."
Eligible companies will have 2-50 employees in the Riverside service area, which includes the cities of Gloucester, Hampton, Newport News, Poquoson, Suffolk, Tappahannock, Smithfield, West Point, Williamsburg, Yorktown and portions of Chesapeake and Suffolk. Also eligible are companies in the counties of Essex, Gloucester, Isle of Wight, James City, King and Queen, King William, Lancaster, Mathews, Middlesex, New Kent, Northumberland, Richmond and Surry.