Question
Should the city act as a convener to negotiate group health insurance options for small businesses and nonprofits?
Background
Small employers often lack bargaining power and pay higher premiums, which can limit hiring and benefits. A city-facilitated purchasing coalition might secure better rates, but could be complex to administer and may face opposition from insurers or larger employers.
Options
- Develop a city-sponsored group plan open to all qualifying small employers.
- Pilot a group plan with a limited number of interested employers.
- Provide technical assistance but leave purchasing to private associations.
- Take no action and leave health plan purchasing fully to the private market.