San Antonio entrepreneurs gathered last week for the first information session hosted by CollectiveX, a nonprofit also known as the Texas Economic Xchange. The organization’s goal is simple: unite Texas small businesses to buy products and services together, thereby lowering costs and increasing negotiating power.
Health insurance as the first focus
For many owners, affordable health insurance has been out of reach. Janie Villareal McClinchie, co‑owner of Que Retro Arts on North Zarzamora Street, explained that she and her husband once had to hold full‑time jobs just to secure coverage for their small shop. “Before, health insurance was really not an opportunity. The fact that we now have accessibility for affordable health insurance is amazing,” she said after signing up with CollectiveX.
Co‑founder Julissa Carielo, who runs the construction‑development firm DreamOn Group, said her company faced a projected 140% increase in premiums last year. “If we can’t offer benefits, we lose workers to larger corporations with better benefits. We need to level the playing field,” she argued.
CollectiveX estimates that, once the program reaches its target of 1,000 members by Oct. 1, the average cost per employee could drop from $750 to $329. The projected plan also includes lower deductibles and broader coverage options, such as vision, dental, disability, and life insurance.
Beyond insurance
While health coverage is the launch point, CollectiveX envisions expanding the bulk‑buy model to other necessities. Founder Carielo described a future where the nonprofit negotiates discounts on smartphones, construction materials, office supplies, travel, and even airline services. A small administrative fee would cover the cost of negotiating, after which members would receive the reduced prices.
Local business owners are already seeing the potential. Jimmy Barocio, a barber in the city, called the idea “great” and likened it to choosing the cheapest gas station. “At the end of the day, you have to go with the cheapest option,” he said.
Other participants, such as Aubrey Gilbert of Homegirls Coffee, emphasized the moral imperative of caring for employees. “Being a small business owner, I think it’s important to take care of my employees because they take care of us,” she noted.
Early momentum
As of Sept. 3, 358 businesses had signed up, ranging from a single‑employee operation to larger firms with dozens of workers. The nonprofit welcomes any Texas employer, regardless of size, to join the effort.
LeRoy Cavazos‑Reyna, who runs the consulting firm Localism, said he joined despite already having coverage through a family member because he sees the broader opportunities the cooperative could create.
Allison De Paoli, who operates a health‑insurance consultancy in San Antonio, confirmed that businesses with 15‑20 employees often face the steepest premiums because of smaller risk pools. “One medical event for one employee can eat into a greater portion of that employer’s money,” she explained.
State support and next steps
Texas law has allowed healthcare cooperatives since 1993, and at least 36 such entities are registered across the state. CollectiveX hopes to add to that legacy by delivering tangible savings to local firms.
Carielo said that securing $300,000 in health‑care savings could enable her to hire six additional workers, further strengthening the local economy. Interested employers can register online through CollectiveX’s website.
Original reporting: San Antonio Report — read the source article.
