Cooperating for Care

Small and medium-sized businesses in Lubbock have found a solution to skyrocketing health care costs. In May 2006, the Lubbock Chamber of Commerce launched its Chamber Employer Health Plan. The four-way partnership between the chamber and FirstCare Health Plans, University Medical Center Health System and Convenant Health System lets mom-and-pop businesses enjoy the health care benefits of a large employer.

By May 2007, the plan represented some 7,700 individuals. About 25 percent hadn't had major medical coverage, said Norma Ritz Johnson, vice president for legislative affairs for the Lubbock chamber.

The savings were immediate for Phil Price, president of The Price Group in Lubbock, who switched his 22-employee advertising company to the plan in June 2006.

"Our employees got a de facto raise of about $100 a month, and our small company expects to save $12,000 a year," Price said.

Price said he had used various insurance plans over the years but battled rising rates.

"We would sign up with an insurance company one year, and the rates would go up the next year," Price said. "The next year we would switch to another insurance company for a lower rate, and their rates would go up the next year. We were in a rat race."

The plan is available to employers in Lubbock and eight surrounding counties, and participants must be chamber members. Enrollees are guaranteed their rates will not increase more than 10 percent on July 1, 2007. The chamber is working to continue that guarantee for subsequent years, Johnson said. For example, savings have ranged from $12,000 annually for companies with fewer than 15 employees to $100,000 annually for a company with 70 employees, Johnson said.

The plan stemmed from law passed by the 2003 Texas Legislature that allows businesses to form health care cooperatives and coalitions. The Texas Chamber of Commerce named the plan its Chamber Development Program of the Year in 2006.

"We get calls from at least one chamber of commerce each week that's interested in doing a similar program," Johnson said.