LIA hopes insurance exchange gets designation

The Long Island Association, a business organization, has operated a health care exchange since 1994.

Small businesses use it to buy insurance for more than 10,000 employees.

Kevin Law, LIA president, said he hopes the group's insurance exchange won't have to compete with the state's new insurance marketplace scheduled to start in 2014.

Law suggested in a March 16 letter to Gov. Andrew M. Cuomo that the state designate the LIA Alliance as a downstate exchange for small businesses -- a move he said would ease the burden on the state's exchange.

Law said the LIA exchange has restricted itself to Long Island but is authorized to sell health insurance to small businesses in Rockland and Westchester counties, and New York City.

"This is the sweet spot for the health insurance exchange because there are so many businesses eligible to participate," Law said, noting he supports Cuomo's efforts.

State Health Department spokesman Peter Constantakes said, "In conjunction with state efforts to promote economic development and small-business growth, we are examining various options that will provide small businesses with access to affordable health insurance."