Health Care Insurance Issue Update
April 2004
Background:
Since 1986 NAWBO has supported the creation of Association Health Plans (AHPs) to improve access and choice for women business owners with respect to medical care for their employees.
Facts:
- There are strict requirements under which only bona fide professional/trade associations that have existed for over three years can offer AHPs.
- The solvency standards are equal to or more stringent than virtually all similar state insurance laws and go beyond the requirements for plans governed by the Employee Retirement Income Security Act (ERISA).
- AHPs are subject to the Health Insurance Portability and Accountability Act (HIPPA) that makes it illegal to deny coverage to any eligible participant based on the health status of an individual employee.
- The Department of Labor will have regulatory authority to ensure that AHP’s are properly administered and implemented.
- AHP’s will have to register with state authorities and abide by their strict disclosure and reporting procedures.
Although AHPs would not solve all the problems in the small group market nor make health care cheap, it would provide more competition into the market, reduce unnecessary regulation and administrative costs and make health coverage more affordable for our members.
Situation:
The House passed the Small Business Health Fairness Act of 2003 (H.R. 660) for the sixth time and the President has publicly stated he will sign such a bill. However the Senate still has not acted to pass the Small Business Health Fairness Act (S. 545) and the legislation is languishing in the Senate Health, Education, Labor and Pensions (HELP) Committee.
Action Requested:
Please contact your Senators and ask them to support this legislation. Sample letter follows. You can go to www.senate.gov and choose “State” to access the web site of your Senator. Then just copy and paste the sample letter into the required form and email it or copy the letter onto your letterhead and fax it. If your Senator serves on the Committee on Health, Education, Labor and Pensions (HELP), it especially important to send them the letter. The following Senators serve on the HELP
Committee:
Chair: Judd Gregg R-NH
Bill First R-TN
Mike Enzi R-WY
Lamar Alexander R-TN
Christopher Bond R-MO
Mike DeWine R-OH
Pat Roberts R-KS
Jeff Sessions R-AL
John Ensign R-NV
Lindsey Graham R-SC
John Warner R-VA
Edward Kennedy D-MA
Christopher Dodd D-CT
Tom Harkin D-IA
Barbara Mikulski D-MD
Jeff Bingaman D-NM
Patty Murray D-WA
Jack Reed D-RI
John Edwards D-NC
Hilary Clinton D-NY
James Jeffords I-VT
A number of Representatives are holding meetings on April 19, 2004 with small business owners to discuss how to increase health care access and reduce costs through AHP’s. Please attend if possible.
Rep. Michael Burgess: Flower Mound City Council Chambers, Flower Mound, TX 1:00 to 2:00 p.m.
Rep. Robin Hayes: Stanley County Chamber of Commerce, Albemarle, NC 8:00 to 9:30 a.m.
Rep. Tom Feeney: Winter Park City Hall, Winter Park, FL 10:00 to 12:00 noon
Rep. Marsha Blackburn: Franklin City Hall, Franklin, TN 9:00 to 10:30 a.m.
Rep. Todd Akin: Chesterfield City Hall, Chesterfield, MO 8:00 to 9:30 a.m.
Sample Letter:
Date
The Honorable (your Senator’s full name)
Office Address
Washington, D.C. 20510
Dear Senator (last name):
As the (your title) of (business name) in (city, state), I am a constituent of yours and I have (number) of employees.
As a small businessperson, I am concerned about the rising cost of health care. Because I want to provide good benefits for my employees, I urge you to support S. 545 that would make health care more accessible through Association Health Plans (AHPs). Association Health Plan legislation would provide an additional choice for me to offer to my employees. Please help ensure that S. 545 is included in any uninsured package the Senate considers this year.
This legislation would allow me to group together with other small businesses to purchase more affordable insurance through a trade association. Large employers and unions are already allowed to take advantage of these economies of scale and administrative efficiencies. I believe it is only fair to allow small businesses the same opportunity. (If you provide insurance you might say) Without AHPs, I am at a competitive disadvantage and end up paying more to provide health benefits to my employees. (If you do not provide insurance you might say) By supporting AHPs you provide small businesses like mine with a viable solution for addressing the cost problems that prevent many of my fellow business owners from providing any insurance coverage to their employees.
I hope I can count on your support for this sensible legislation.
Sincerely,
(Your name and title plus company and contact information if not printed on your letterhead)
Please contact Diana Wilhite for questions or comments.
