Washington- Congressman Joe Pitts (R-PA) today joined Small Business Committee Chairwoman Nydia Velázquez (D-NY) in reintroducing healthcare legislation meant to help American entrepreneurs bridge the expanding healthcare gap.  The legislation will be known as the Small Business Cooperative for Healthcare Options to Improve Coverage for Employees (CHOICE) Act.
 
It allows small businesses to form health insurance cooperatives and to then transfer the risk of catastrophic medical costs to a captive excess claims insurer.  The bill also creates important incentives for small businesses to provide the families of their workers with expanded coverage.

Congressman Pitts’ statement follows:

“Too many small businesses have a hard time affording health insurance for their employees.  These small businesses are the backbone of innovation and job creation in our economy.  Our nation’s small businesses will create many of the jobs that will help reduce unemployment as we get our economy back on track.  This bill will address two problems at once; helping small businesses to remain competitive in the economy while getting more people covered with health insurance.”

Background

The CHOICE Act is bipartisan legislation which would allow businesses to obtain coverage at negotiated bulk rates through purchasing pools.  The bill would help small businesses offer health insurance through a refundable tax credit of 65 percent.  It also minimizes risks for insurance companies by letting small firms pool their employees with those of other businesses in voluntary health cooperatives.  That would allow entrepreneurs to negotiate better rates for coverage for their employees and themselves.  Self-employed individuals would save $5,000 per year on health coverage costs. Other small firms would save more than 34 percent.  The result would be fewer uninsured Americans and a more competitive business sector.

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