U.S. Chamber Urges Congressional Action to Allow Small Businesses to Pool Health Care Costs

WASHINGTON, D.C.—The United States Chamber of Commerce welcomed the introduction of House and Senate legislation to permit small businesses to pool their health care costs and self-insure under ERISA just as many large companies do, citing the high percentage of uninsured Americans who work for small businesses.

"Lack of access to affordable health care insurance is a big problem for small business owners and the self-employed," said Kate Sullivan, Chamber health care policy director. "Enactment of association health plan reforms will reduce health insurance costs significantly for small business owners and in turn make health insurance affordable and available for working families."

The Small Business Health Fairness Act, bipartisan legislation sponsored by Reps. Fletcher (R-KY) and Dooley (D-CA) and Sen. Hutchinson (R-AR), could allow millions of people who now have coverage through a small business a choice of health plans. The bill also addresses the concerns of state regulators by establishing minimum solvency standards, providing an oversight role for state regulators and requiring plans to pay state-imposed taxes or assessments used to fund small group risk pools.

"The House has already passed association health plan legislation four times," said Sullivan. "Now, with backing by President Bush, we look forward to seeing Congress finish what it started and provide as many options for the purchase of health coverage by small businesses and individuals as possible."<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The Chamber has long advocated expanding pooled purchasing for small businesses, individuals and the self-employed, as well as strengthening the current private system of health coverage through tax incentives for individuals who purchase their own insurance and refundable tax credits for those with low incomes.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector, and region.

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