HPIC expands health benefits.(Health Insurance Plan of California)

Insurer to be run by private sector

Jane Mittow decided to join the state's small-employer purchasing pool last month for two reasons: choice and price.

Owner of a small shuttle service called the Davis Airporter, Mittow never has provided health benefits before and didn't have a lot of time to research the matter. She'd already talked to Kaiser, but got a flier in the mail that: said she could offer other plans, too, if she joined the statewide pool.

"This is great. My employees get a choice and it's affordable," said Mittow, who will spend close to $11,000 out of annual revenue of $450,000 to cover the "handful" of full-time employees on her overall staff of 20.

Mittow's situation is …