Cut Costs, Not Coverage: Association Health Plans for Oregon Small Employers

Small Businesses Deserve Better Options for Employee Benefits

If you’re a small business owner, you know that shopping for employee health insurance can feel like an uphill climb. Premiums go up year after year, and the quote you receive from carriers often feels like it’s based on factors completely outside your control.

That’s because, under insurance rules, a “small group” is defined as any organization with fewer than 50 eligible employees. When these groups request quotes, carriers use a strict formula that primarily considers:

• Employee age: What’s the average age of your team?
• Group size: How many employees are eligible for benefits?
• Location: Where is your business based?
• Industry: What kind of work do your employees do?

While these criteria help determine your “rate,” they also leave little room for flexibility or customization. Carriers view small groups as higher risk because even one major medical claim can impact overall costs. As a result, many small businesses end up paying higher premiums with limited options.

Why Small Groups Feel Stuck

Even when your business has a healthy workforce and few claims, your rates can still rise annually, often due to one factor you can’t control: age. As your workforce matures, your average employee age increases, which automatically triggers higher renewal rates.

The end result? Many small employers feel trapped in a system that doesn’t reward stability or proactive management of employee health.

The Good News: There’s a Smarter Way

For small businesses looking for a better deal, Association Health Plans (AHPs) offer a compelling alternative.

AHPs allow groups of small employers, often within the same industry or region, to band together and purchase health insurance as one large group. This collective approach changes everything about how your rates are determined.

Here’s why AHPs can make such a difference:

1. More Bargaining Power: When multiple small businesses join forces, they gain the kind of buying power normally reserved for large employers. That leverage means more competitive rates and access to richer plan options.
2. Fairer, More Flexible Rating: Instead of being judged solely on factors like age or zip code, rates in an AHP are based on the overall health of the combined group. This broader risk pool smooths out the impact of one employer’s demographics or claims, often resulting in lower premiums.
3. Better Coverage, Less Guesswork: AHPs can offer access to benefit designs, cost-sharing arrangements, and wellness programs that typically aren’t available to small groups. Many members find they can improve coverage for employees while actually reducing costs.

AHPs in Oregon: A Proven Option for Small Employers

If you’re an Oregon employer looking to stabilize or reduce your employee benefit costs this year, now is the ideal time to explore what an Association Health Plan can do for your organization.

Through Cascade Employers Association’s partnership with Alera Group (formerly CSNW Benefits), small businesses can access competitive AHP rates and customized plan options designed specifically for Oregon employers.

Take the Next Step

Want to compare your current benefits with an Association Health Plan quote? Contact Manya Oleson at Alera Group, Cascade Employer Association’s benefits partner, to explore how your business can take advantage of this collective approach to better rates and better coverage.