THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, March 17, 1996 TAG: 9603140124
SECTION: CAROLINA COAST PAGE: 05 EDITION: FINAL
SOURCE: BY JACK DEMPSEY, CORRESPONDENT
LENGTH: Medium: 83 lines
SMALL-BUSINESS owners and employees in eastern North Carolina now have a new option for affordable health insurance.
Caroliance, a state-authorized, non-profit organization, has created a purchasing alliance to supply a variety of health insurance plans to independent contractors, self-employed people and businesses with 49 or fewer employees.
John Bone, executive vice president of the Outer Banks Chamber of Commerce, said the Chambers of Eastern North Carolina supported the creation of Caroliance as a way to bring security to more people in the region.
``In a comparable alliance in Florida, over half of the initial enrollees had not been insured before. An unexpected medical bill can impoverish the uninsured,'' he said.
``The chamber supports any effort like this that keeps the cost of business down and provides the employees of small operations with the health insurance coverage they need.''
In 1993, the state General Assembly authorized the creation of Caroliance, a statwide organization covering six regions. Operations began in the western region and are now beginning in the 34 counties of the eastern region, directed by Rex Hammond.
``There's power in numbers,'' Hammond said. ``By pooling the purchasing power of thousands of small operations across the state, we can negotiate discounted rates the same way large organizations do, and the cost of the premiums may actually go down as our enrollment goes up.''
Membership in a chamber of commerce is not required for coverage, Hammond added.
Local business leaders say they hope the plan can cut down on the headaches of providing health insurance.
``I'm definitely interested,'' said David Hoppe, owner of Contractors Equipment Service in Currituck County. ``I have to shop around every year because my guaranteed `low' rates jump 25 percent at the end of the first year.
``I've saved thousands of dollars by shopping around, but it's a nuisance to have to do it every year,'' Hoppe added. ``If this program keeps the premiums affordable for more than one year, the savings in time and money will appeal to lots of small businesses.''
Eventually, Caroliance will have about 100 agents in the eastern region. Several agents have recently been authorized to write policies in and around the Outer Banks.
Mike Shafer, an authorized agent in the Nags Head office of Dowd and Twiddy Inc., thinks Caroliance's flexibility will appeal to many businesses.
``Right now,'' Shafer said, ``Caroliance has contracts with Blue Cross, Nationwide and Mid-South, and each of those insurers has several types of plans to offer. No two employees have to take the same plan or even the same company, so each person gets what he wants. I don't know where else a small employer can get so many options.''
``Many people may prefer to continue switching insurance companies annually to get those low, first-year rates,'' said Jay Aydlett of Aydlett Insurance. ``However, those policies routinely exclude pre-existing conditions for at least a year, so switching every year means those conditions never get covered. Caroliance makes annual switching unnecessary.''
People with a group plan who buy a policy through Caroliance have pre-existing conditions covered immediately, said Bill Winslow, a Caroliance marketing representative in Elizabeth City.
``Another feature of our plan is its guaranteed issue,'' Winslow said. ``That means you can't be turned down, which will help high-risk people who haven't been able to buy insurance at any price.''
People in northeastern North Carolina will hear a lot about Caroliance in about a month, Winslow said.
``We'll be represented at the Dare County Expo on April 23-24,'' he said. ``And we'll follow that with a marketing blitz.
``But we're operational now and people can call our 800 number to get premium quotes, which we prepare in about two hours.''CORRESPONDENT MEMO: For more information on Caroliance, call 800-873-6464. ILLUSTRATION: Photo by JACK DEMPSEY
David Hoppe, right, owner of Contractors Equipment Service in
Currituck County, discusses the Caroliance health plan with mechanic
Cecil Pucket.
by CNB