The House Small Business Committee

    

 

June 17, 1999

Press Release

 

 

 

HEALTH CARE BILL TO HELP
UNINSURED PASSES FIRST
HURDLE TO THE FLOOR
Bill Will Help Millions of Uninsured Find
Quality, Affordable Healthcare

 

WASHINGTON, DC - Today, House Small Business Committee Chairman Manzullo's (R-Mo.) proposal to offer hard-working uninsured Americans quality, affordable health care cleared its first hurdle on its way to the House floor. The Education and the Workforce Subcommittee on Employer-Employee Relations voted on a series of health care bills designed to offer millions of uninsured Americans health care and improve the existing system. Talent's proposal, a bill designed to allow small businesses to pool together to offer healthcare to their employees through Association Health Plans (AHPs), was passed by voice vote.

"During the entire debate on healthcare reform, the uninsured have been the only people who haven't had a voice in Washington. No one lobbies for them," said Talent. "But today, we stood up for the millions of hard-working Americans who have no voice in Washington and no healthcare. I'm pleased the Subcommittee put politics aside to pass this important measure," added Talent.

Of the 43 million Americans currently without health insurance, almost 60% work for a small business or are dependents of someone who does. AHPs allow national trade associations, from the National Restaurant Association to the American Farm Bureau, to sponsor health care plans. The small business people or farmers who are members of the associations can buy into these plans for themselves and their employees.

These Association plans, or AHPs, would cover very large groups, would enjoy large economies of scale, and could offer self funded plans that would not have to provide any margin for insurance company profits. As a result, the AHPs would, by conservative estimates, save small business 10-20% on health care costs.

AHPs can not currently operate nationally but are available in some states. Even in that limited sense, AHPs have had a significant impact in making insurance more accessible. The Western Growers Association (WGA) offers an association health plan in California that provides quality healthcare which agricultural migrant workers can afford. One WGA family health plan covers employee, spouse, and children for $149 per month for employees of any age. In comparison, the least expensive, comparable health plan offered by the government-run Health Insurance Plan of California (HIPC) is $273.75 per month. - almost twice as much

The bill now is headed to the full Committee for a vote before being readied for passage by the entire House of Representatives. Chairman Talent is hopeful that the bill will continue to receive overwhelming bipartisan support, and that Congress can move swiftly to end this injustice that has afflicted small businesses for too long.

 


Return to Press Releases

Return to House Small Business Committee Home Page

 

 

     

2361 Rayburn House Office Building, Washington, DC  20515  

Phone:   (202) 225-5821   Fax:  (202) 225-3587  

Email:   smbiz@mail.house.gov