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Insurers team up, offer mid-sized business coverage

The plan between CIGNA and Group Health Cooperative targets Washington companies with 100 to 1,000 employees.

By Mike Norbut, amednews staff. Nov. 25, 2002.

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A marriage between two of Washington state's health insurance competitors may result in more choices for mid-sized businesses and their employees.

CIGNA HealthCare, which provides medical, dental, and mental health coverage to millions of Americans, including about 200,000 in Washington, and Group Health Cooperative, which serves 600,000 people in the Pacific Northwest, have agreed to venture into an arena they've overlooked in the past because costs are often too high for smaller employers.

The two insurers have been joined by BENU Washington, a benefits solutions company that is looking to get a piece of a relatively untapped insurance market. BENU, which launched its new program in October, will offer CIGNA and Group Health plans as a package to mid-sized employers, giving them the opportunity "to offer Fortune 500-like benefits without increasing their administrative costs," said Jeff Closs, president and CEO of BENU Inc., headquartered in San Mateo, Calif. The plan targets companies with 100 to 1,000 employees.

"There will be plans at multiple price points, so employees can see differences in the plans and make a value judgment," Closs said.

BENU executives hope the plan, available beginning Jan. 1, 2003, will catch on with employers because it would allow them to set a fixed contribution and give a variety of pricing options to their workers. By assuming some of the risk for insurers, BENU also gives health plans a chance to enter a market that in the past has been closed to them. [...]