Support Passage of H.R. 660, the "Small Business Health Fairness Act of 2003"

To Members of the United States House of Representatives:

The U.S. Chamber of Commerce, which represents more than three million businesses and organizations of every size, sector, and region, together with the 147 undersigned state and local Chambers of Commerce from 36 states, urge prompt consideration and passage of H.R. 660, the "Small Business Health Fairness Act of 2003." This legislation will expand the availability of health coverage for employees of America's small businesses by allowing employers to join together through bona fide associations to buy health coverage under an Association Health Plan (AHP).

As organizations that represent small businesses, affordable health coverage is a top priority. Approximately 60% of the uninsured work for a small business or reside in a family employed by a small business. Small businesses face significant challenges in accessing affordable health insurance coverage – on average, their premiums are 20 to 30 percent higher than those of large self-insured companies. Moreover, administrative expenses for small business plans are 25-27 percent of premiums, compared to about 5-11 percent for large business plans.

The need for the "Small Business Health Fairness Act" is more critical than ever as health insurance costs continue to rise for small businesses, further increasing the number of the uninsured. AHPs extend to small businesses the same advantages now enjoyed by large employers and unions which sponsor health coverage under federal law rather than the strictures of state bureaucracy that have stifled competition and narrowed the range of health plan options. For the first time, small employers would be afforded greater bargaining power, economies of scale, administrative efficiencies, and the benefits of a uniform regulatory structure.

Critics of opening the small group insurance market to more competition charge that AHPs will lead to "cherry picking" and destabilization of the small group market. In fact, AHPs are fully subject to the Health Insurance Portability and Accountability Act requirements that clearly prohibit discrimination based on health status. Sponsoring entities must extend coverage to all members eligible for membership benefits and may not vary employers' dues based on health status. In addition, the solvency standards, plan requirements and patient protections included in the legislation are more stringent than those now required by some states. Plans must also comply with the extensive requirements under ERISA governing benefit coverage and claims denial and appeal procedures.

Small business is the backbone of our nation and has driven much of the economic boom of the last decade and century. If small employers continue to face annual premium increases in the range of 20 to 40 percent, they will be unable to remain competitive and contribute to the growth of the U.S. economy. Enactment of the "Small Business Health Fairness Act" is essential to improving access to health care coverage and making it more affordable for small business employees and their families.

Sincerely,

U.S. Chamber of Commerce
Minnesota Chamber of Commerce
The New Jersey State Chamber of Commerce
Texas Association of Business
Wisconsin Manufacturers & Commerce
Alabama Gulf Coast Area (AL) Chamber of Commerce
Mobile Area (AL) Chamber of Commerce
Montgomery Area (AL) Chamber of Commerce
Flagstaff (AZ) Chamber of Commerce
Greater Sierra Vista (AZ) Chamber of Commerce
Mesa (AZ) Chamber of Commerce
Tucson Metropolitan (ZA) Chamber of Commerce
Anaheim (CA) Chamber of Commerce
Antelope Valley (CA) Chamber of Commerce
Carlsbad (CA) Chamber of Commerce
Diamond Bar (CA) Chamber of Commerce
Hollywood (CA) Chamber of Commerce
The Golden Triangle (CA) Chamber of Commerce
Modesto (CA) Chamber of Commerce
National City (CA) Chamber of Commerce
Newport Beach (CA) Chamber of Commerce
Orange (CA) Chamber of Commerce
Rancho Bernardo (CA) Chamber of Commerce
Rialto (CA) Chamber of Commerce
Santa Clara (CA) Chamber of Commerce
Santa Clarita Valley (CA) Chamber of Commerce
San Jose Silicon Valley (CA) Chamber of Commerce
San Rafael (CA) Chamber of Commerce
Vallejo (CA) Chamber of Commerce
Visalia (CA) Chamber of Commerce
Ventura (CA) Chamber of Commerce
Aspen (CO) Chamber Resort Association
Glenwood Springs (CO) Chamber Resort Association
Golden (CO) Chamber of Commerce
Grand Junction Area (CO) Chamber of Commerce
Greater Seaford (DE) Chamber of Commerce
Chamber South (FL)
Daytona Beach-Halifax Area (FL) Chamber of Commerce
Greater Boca Raton (FL) Chamber of Commerce
Madison (FL) Chamber of Commerce
North Palm Beach County (FL) Chamber of Commerce
Zephyrhills (FL) Chamber of Commerce
Camden-Kings Bay Area (GA) Chamber of Commerce
Douglas County (GA) Chamber of Commerce
Valdosta-Lowndes County (GA) Chamber of Commerce
Belleville (IL) Chamber of Commerce
Chicago Southland (IL) Chamber of Commerce
Chicagoland (IL) Chamber of Commerce
Fairbury (IL) Chamber of Commerce
Greater Aurora (IL) Chamber of Commerce
Joliet (IL) Chamber of Commerce
Mount Prospect (IL) Chamber of Commerce
Naperville Area (IL) Chamber of Commerce
Richmond/Spring Grove (IL) Chamber of Commerce
Rockton (IL) Chamber of Commerce
Connersville (IN) Chamber of Commerce
Greater Fort Wayne (IN) Chamber of Commerce
Posey County (IN) Chamber of Commerce
Altoona Area (IA) Chamber of Commerce
Clinton Area (IA) Chamber of Commerce
Orange City (IA) Chamber of Commerce
Newton Area (KS) Chamber of Commerce
Ascension (LA) Chamber of Commerce
The Chamber of Greater Baton Rouge (LA)
Ellsworth Area (ME) Chamber of Commerce
Greater Portland (ME) Chambers of Commerce
Wells (ME) Chamber of Commerce
Affiliated Chambers of Commerce of Greater Springfield (MA)
Greater Lowell (MA) Chamber of Commerce
Southern Berkshire (MA) Chamber of Commerce
Springfield (MA) Chamber of Commerce
Taunton (MA) Chamber of Commerce
Fremont Area (MI) Chamber of Commerce
Greater Jackson (MI) Chamber of Commerce
South Haven (MI) Chamber of Commerce
Wyoming-Kentwood Area (MI) Chamber of Commerce
Burnsville (MN) Chamber of Commerce
Elk River Area (MN) Chamber of Commerce
Greater Mankato (MN) Chamber of Commerce
International Falls Area (MN) Chamber of Commerce
Pipestone (MN) Chamber of Commerce
Willmar Lakes Area (MN) Chamber of Commerce
Maryville (MO) Chamber of Commerce
O'Fallon (MO) Chamber of Commerce
Olive Branch (MS) Chamber of Commerce
Bitterroot Valley (MT) Chamber of Commerce
Great Falls Area (MT) Chamber of Commerce
Aurora Area (NE) Chamber and Development Corporation
Columbus Area (NE) Chamber of Commerce
Fremont Area (NE) Chamber of Commerce
Lincoln (NE) Chamber of Commerce
Sparks (NV) Chamber of Commerce
Cape May County (NJ) Chamber of Commerce
Fair Lawn (NJ) Chamber of Commerce
Eastern Monmouth Area (NJ) Chamber of Commerce
Greater Elizabeth (NJ) Chamber of Commerce
Hunterdon County (NJ) Chamber of Commerce
Princeton Regional (NJ) Chamber of Commerce
Somerset County (NJ) Business Partnership
Rockaway Park (NY) Chamber of Commerce
Angel Fire (NM) Chamber of Commerce
Belen (NM) Chamber of Commerce
Clayton-Union County (NM) Chamber of Commerce
Hobbs (NM) Chamber of Commerce
Santa Fe (NM) Chamber of Commerce
Catawba County (NC) Chamber of Commerce
Marion (NC) Chamber of Commerce
Dayton Area (OH) Chamber of Commerce
Fairborn Area (OH) Chamber of Commerce
Hardin County (OH) Chamber of Commerce
Marietta Area (OH) Chamber of Commerce
Ottawa Area (OH) Chamber of Commerce
Seaside (OR) Chamber of Commerce
Union County (OR) Chamber of Commerce
Beaver County (PA) Chamber of Commerce
Bradford Area (PA) Chamber of Commerce
Gettysburg-Adams County Area (PA) Chamber of Commerce
Pocono Mountains (PA) Chamber of Commerce
Wilkes-Barre (PA) Chamber of Commerce
The Greater Providence (RI) Chamber of Commerce
The Northern Rhode Island (RI) Chamber of Commerce
Spearfish (SD) Chamber of Commerce
Chattanooga African American (TN) Chamber of Commerce
East Tennessee Black Chamber of Commerce
Johnson City (TN) Chamber of Commerce
Lauderdale County (TN) Chamber of Commerce
McMinnville-Warren County (TN) Chamber of Commerce
Beaumont (TX) Chamber of Commerce
Brownsville (TX) Chamber of Commerce
Cisco (TX) Chamber of Commerce
Deer Park (TX) Chamber of Commerce
Greater Boerne (TX) Chamber of Commerce
Houston West (TX) Chamber of Commerce
La Grange Area (TX) Chamber of Commerce
Laredo (TX) Chamber of Commerce
Uvalde Area (TX) Chamber of Commerce
Provo-Orem (UT) Chamber of Commerce
Greater Richmond (VA) Chamber of Commerce
Loudoun County (VA) Chamber of Commerce
Roanoke (VA) Chamber of Commerce
Camano Island (WA) Chamber of Commerce
Freeland (WA) Chamber of Commerce
Kelso Longview (WA) Chamber of Commerce
Stanwood (WA) Chamber of Commerce
Grafton (WI) Chamber of Commerce
Green Bay Area (WI) Chamber of Commerce
River Falls Area (WI) Chamber of Commerce
Sauk Prairie Area (WI) Chamber of Commerce