| Washington, DC: Today Congressman Kenny Marchant (TX-24) supported the House-passed H.R. 525, The Small Business Fairness Act, legislation that will extensively expand access to health coverage for uninsured workers across the country. The bill creates association health plans (AHPs), allowing small business to band together through associations and become larger purchasers of health insurance.
"Without question, every American worker deserves access to quality, affordable healthcare," said Marchant, a member of the Employer/Employee Relations Subcommittee and original cosponsor of The Small Business Fairness Act. "However in today's environment of rising insurance costs, many small firms are forced to reduce health coverage for their employees, or simply not offer it at all.
"As a former small employer, I identify with the nightmare of healthcare purchasing. AHPs alleviate the high costs for small businesses and make it possible for their employers to access reasonable, quality health coverage."
AHPs give small businesses greater economies of scale, increasing their bargaining power in the healthcare arena. This bill also gives them freedom from costly state-mandated benefit packages, and could lower their overhead costs by as much as 30 percent. All these benefits are currently enjoyed by big corporations and unions because of their larger economies of scale.
According to the U.S. Census Bureau, the number of Americans who lacked health insurance rose to more than 45 million last year. Currently 60 percent of the uninsured work in small businesses. Department of Labor studies have shown that only 49% of firms with less than 100 people offer health insurance to their employees.
Small businesses are strapped with prohibitively expensive premium costs because they have few choices in insurance providers. AHPs offer new options. By giving small businesses the opportunity to pool their resources and strengthen their bargaining power, AHPs will reduce costs for employers.
Most importantly, AHPs respond to the needs of uninsured working families by expanding access to affordable health care. The Congressional Budget Office concluded that AHP legislation would extend health insurance to up to 2 million uninsured American workers, with no cost to the government.
"This bill address two issues at the heart of the health care problem: access and cost." added Marchant. "Uninsured American workers have reason to hope; this solution will give them the opportunity to have quality, affordable health care."
The Small Business Fairness Act is strongly supported by President Bush. The bill has received endorsement by a broad coalition of over 175 groups, including the U.S. Chamber of Commerce, the National Federation of Independent Businesses, the Associated Builders and Contractors, The Latino Coalition, the National Association of Women Business Owners, the National Black Chamber of Commerce, and the National Restaurant Association.
CONTACT:
Annie Christian
(202) 225-6605
annie.christian@mail.house.gov |
