WASHINGTON, DC – Today, House Small Business Committee Chairman Jim Talent (R-Mo.) referred to a new study that provides further evidence small business access to health care through Association Health Plans (AHPs) must be a part of any health care reform package this year. The Center for Studying Health System Change (HSC), an independent research group released the study revealing health care premiums for small businesses likely to employ low-income workers rose 5.2 percent in 1998 and another 6.9 percent in 1999. The study’s researchers cited higher health care costs and fewer small businesses offering health benefits to low-income workers as the primary reason many families don’t have health insurance. More than 60% of the 33 million adults and 11 million children that are uninsured are small business owners, their employees and their families.

Talent, a conferee and chief sponsor of the Managed Care Reform bill (H.R. 2990) has been a leader on increasing small business access to health care through AHPs. According to the HSC study the percentage of children with private coverage, such as plans offered through employment, fell to 42 percent from 47 percent. "Small businesses want to offer health care to their employees but do not have affordable options. It makes sense that any business would want to offer their employees the best health care possible. Unfortunately, the high cost of insurance makes it impossible for some small businesses to offer health care plans to their employees," remarked Talent.

The study also showed that workers’ share of health insurance premiums are on the rise. "Often when a small firm does offer a plan, the premiums are unaffordable for low-income families who ultimately choose food and living expenses over health insurance. AHPs will remove the barriers that exist for small businesses who want to purchase quality, affordable health insurance by allowing entrepreneurs to pool together through associations to take advantage of the economies of scale." said Talent.

AHPs would allow national trade and professional associations, like the National Restaurant Association or the U.S. Chamber of Commerce, to sponsor not-for-profit health care plans. The small business owners who are members of the associations could buy into these plans for themselves and their employees. As a result, AHPs would, by conservative estimates, save small businesses 10 to 20 percent on health care costs, thus expanding health care coverage for millions of hard-working Americans currently without health insurance. "The number of uninsured

Americans is unacceptable. AHPs are vital if we are to ensure that when people get sick they receive the care they need," said Talent.

The study was released just weeks after Governor George W. Bush announced his inclusion of AHPs in a health care proposal and the Democratic Leadership Council revealed
poll results that confirmed access to quality health care is the primary health care concern of Americans.

Another study performed by CONSAD noted that the creation of AHPs would result in at least 4.5 million newly insured individuals at more affordable rates. AHPs would reduce the number of uninsured by more than 10% with no cost to taxpayers.

"Clearly AHPs are the future of health care. The final health care bill must include this common sense solution if we are to provide access to quality health insurance for millions of the uninsured. After all," concluded Talent, "what good are patient protections if you can not afford health insurance in the first place."