Health coverage benefits small business

AUSTIN (KXAN) - A new health insurance program for small businesses is getting loads of attention from Austin residents.

TexHealth, a non-profit insurance sharing program, provides health insurance to businesses that previously could not afford to give the coverage to their employees.

Gloria Neunaber said the program is working wonderfully after nearly two months of coverage at the Trinity Child Development Center in Northeast Austin.

Neunaber, the Executive Director of the non-profit daycare center, said she lost employees because she could not pay for health care coverage

"Childcare is not a real lucrative field," said Neunaber. "Nothing was affordable for those people making $8 to $10 per hour."

The TexHealth plans for employees are $249 per month.

The employer and employee split the cost, however, dependents are not covered.

If workers make less than $16 per hour, part of the plan's costs are paid by a federal grant.

That would put an employee's cost at $83 per month.

One in 5 Travis County residents don't have health coverage according to TexHealth staff.

They estimate 70 percent of those in the program work in Travis County.

United Healthcare provides the administration of the plan, meaning employees have access to United's network in Austin, said Ann Kitchen, one of TexHealth's Board Members.

With a national debate on health care, Neunaber said she couldn't wait on Washington.

"We know that that still may take a little while," said Neunaber. "We didn't want to wait."

Council Member Laura Morrison said the city is already swamped with people trying to learn more about the program at orientation sessions.

"Within three days of getting the word out," said Morrison. "It was fully subscribed with 75 people."

Still , those that have the plan, say one of the drawbacks is the $100,000 limit and, they need more people to sign up to keep costs down.

"At least, we have something," said Neunaber. "Before we had nothing."

It is a constant, they say, in a world of uncertain healthcare, keeping staff and kids healthy into the future.