Expanding Access to Quality Health Care

For Working Families

 

September 27, 2006

 

According to the U.S. Census Bureau, the number of Americans who have no health insurance has increased to more than 46 million.  The rising cost of health insurance premiums is the biggest factor in this decline – and the number one problem facing small business in this country.  Estimates indicate 60 percent or more of the working uninsured work for or depend on small employers who lack the ability to provide health benefits for their workers.  

 

Working families should not have to face the struggles of everyday life without health insurance.  All Americans should have affordable health insurance coverage options, and House Republicans are committed to creating affordable options to help uninsured working families.

 

Association Health Plans Give Hope to Millions of Americans Without Health Benefits   

 

  • The fact that more 46 million Americans lack health insurance is simply unacceptable.  Many of these Americans work for small employers who can’t afford to purchase quality health insurance benefits for their workers.  These employers are denied the ability to purchase quality health coverage for their workers that compares with the benefits large, multi-state companies have been offering to their workers for decades.  For example, 83 percent of companies with more than 5,000 employees voluntarily offer their workers a choice of more than one health plan.  In contrast, only 10 percent of firms with fewer than 50 workers offer a choice of plans. 

 

  • House Passes Association Health Plans (AHPs).  On July 26, 2005, Republicans and Democrats alike joined together to pass the Small Business Health Fairness Act (H.R. 525), a measure that would significantly expand access to health coverage for uninsured families across the country.  The House passed the bill by a vote of 263-165, with the support of 36 Democrats.

 

  • AHPs Lower Cost and Strengthen Bargaining Power.  The bipartisan bill creates AHPs to allow small businesses to band together through associations and purchase quality health care for workers and their families at a lower cost.  The bill would increase small businesses’ bargaining power with health care providers, give them freedom from costly state-mandated benefit packages, and lower their overhead costs by as much as 30 percent.

 

  • Addressing Cost and Access in Health Care.  AHPs address both the access and cost issues at the heart of the health care reform debate, giving uninsured working families new hope for a solution that can give them access to quality health care.  Small businesses in most states are stuck with disproportionately high costs because they have to choose from fewer than five providers; freeing them from costly state mandates, AHPs offer them new options to choose from.  By giving small businesses the opportunity to pool their resources and increase their bargaining power, AHPs will help employers reduce their health insurance costs.  Most importantly, AHPs will expand access to quality health care for the people for whom it is currently out of reach: uninsured working families.

 

  • Strong Bush Administration Support.  The Bush Administration strongly supports the Small Business Health Fairness Act.  The Statement of Administration Policy on the bill stated it “would improve access to affordable, quality health insurance for millions of American workers and their families.”  The statement also cited the worker protections in the bill, stating it would “safeguard consumer interests” with its strict eligibility requirements and strong solvency standards that go far beyond what is currently required of large corporations and labor unions.  Along with administration support, the legislation also garners support from 93% of Americans according to a poll conducted in 2004.

 

  • Wide-Ranging, Bipartisan Coalition Supports AHPs.  A broad and diverse coalition of more than 100 groups have endorsed the AHP bill, including the U.S. Chamber of Commerce, the National Federation of Independent Business, the American Farm Bureau Federation, the Associated Builders and Contractors, The Latino Coalition, National Black Chamber of Commerce, the National Association of Women Business Owners, and the National Restaurant Association.