Why target small employers?

Although the uninsured are distributed across all ethnicities, age groups and income levels, the problem is particularly pronounced at businesses with 50 or fewer employees. A recent Texas Department of Insurance study indicates that fewer than one-third of small businesses provide health insurance for their employees. The 3-Share plan will be specifically directed to those small employers who do not provide health insurance to their employees. The Texas insurance code differentiates the mandates for insurance coverage for employers with less than 50 employees (small employers) from those with more than fifty employees, but even insurance plans for small employers require some mandates that make even small employer plans fairly comprehensive and expensive.

Small employers are less willing to pay the costs of comprehensive health insurance benefits for their employees than large employers. The Texas Department of Insurance study noted that over 60% of small employers are not offering health insurance primarily because of cost.

The 3-Share plan is not insurance but, rather a self-funded health plan, focused on wellness and primary and preventative health care, with subsidies for low wage employees. The proposed Dallas plan would limit eligibility for employees and employers to those small employers that have not provided health insurance for their employees for the past twelve months.