U.S. Chamber Calls for Action on Affordable Health Plans

WASHINGTON, D.C. – The United States Chamber of Commerce applauded today's report from the Department of Labor on the need for association health plans to expand high quality health coverage to millions of working families and uninsured Americans.

"Opening the door for businesses to pool together nationwide under bona fide associations will give small business owners the same bargaining clout, economies of scale, and administrative efficiencies that Fortune 500 companies and labor unions now enjoy," said Bruce Josten, Chamber executive vice president. "Putting small businesses on a level playing field with bigger companies will reduce their health plan costs and we are
pleased this is a top priority for the administration."

The Department of Labor's report highlighted the advantages of allowing association health plans to be established and operate under the Employee Retirement Income Security Act and recommended additional requirements to ensure plans' financial solvency and safeguard against practices to attract only the most favorable health risks. "We particularly welcome the administration's pledge to commit the resources necessary to ensure these plans are properly regulated," stated Josten.

The U.S. Chamber supports pooled purchasing for small employers – along with equitable tax treatment for individuals and the self-employed who purchase their own health coverage and tax credits targeted to those with modest incomes – as the best tools to make health coverage more affordable and reduce the growing number of uninsured.

The Chamber opposes efforts to add new mandates and expand employers' liability for the health coverage they voluntarily provide to their workforce. The cost of providing health insurance is a significant expense for employers. As costs rise, companies scale back or even drop coverage or require employees to contribute a larger portion of the cost. And, as employees' costs rise, overall participation declines, adding to the problem of uninsured working families.

"Eight out of ten Americans with private health care plans rely on their employers for their coverage – and the government needs to focus on those steps that will increase coverage, not drive up costs," said Josten.

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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