Phil Bredesen has signed into law a bill to allow small companies to unite to negotiate for group health insurance, small-business advocates hope affordable care and expanded options will soon be available.
Tennessee’s leader of the National Federation of Independent Business called the action “groundbreaking.”
The governor’s endorsement, following unanimous support by the state House and Senate, means the law will go into effect in January. At that point, small firms will be able to form cooperatives to obtain health care.
“Tennessee is on the cutting edge of health care reform for small businesses,” said Jim Brown, NFIB state director. “I applaud the legislature and the governor. Tennessee is making great strides in improving coverage options for small businesses and increasing the number of covered lives.”
The legislation is a victory for the NFIB, which has long supported the initiative. The organization’s main office is in Nashville and counts more than 10,000 members statewide.
The cooperatives must meet a number of requirements, including having at least 1,000 eligible employees or having at least 10 participating employers. The groups also must hold open enrollment periods at least once a year.
The program is voluntary and available to companies with at least two and not more than 50 employees.
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