U.S. Chamber Supports Pooling Health Care Costs

WASHINGTON, D.C. – The United States Chamber of Commerce welcomed the findings of a Congressional Budget Office study that shows proposed ERISA regulation of association health plans would reduce the number of uninsured Americans who work for small businesses.

"The CBO's estimate that 330,000 people would gain access to health care coverage through these regulation changes may be too conservative," said Kate Sullivan, manager of health care policy for the Chamber. "But even a conservative estimate means that more than 650 Main Street businesses in every state would finally be able to afford to offer their employees health coverage."

In today's tight labor market, health care coverage is the most sought after benefit and typically is valued at 10 to 15 percent of a worker's total compensation, according to the Chamber.

The CBO report also estimated that those who now purchase commercial state-regulated health plans could save as much as 13 percent by switching to an ERISA-regulated association health plan and spreading their risk through pooling. The Chamber has long advocated the merits of ERISA in reducing employers' health costs and called for its accessibility by smaller employer groups.

Yesterday, the U.S. Chamber participated in a landmark conference with seven other diverse organizations committed to reducing the number of uninsured Americans. Greater use of purchasing pools was advocated by a majority of those organizations.

"The U.S. House of Representatives has already passed this proposal four times, most recently as part of the Quality Care for the Uninsured Act," said Sullivan. "The Senate should follow the House's lead and provide as many options for the purchase of health coverage by small businesses and individuals as possible."

The United States Chamber of Commerce is the world's largest business federation, representing businesses and organizations of every size, sector and region.

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