Chamber Supports Association Health Plans for Small Businesses

WASHINGTON, D.C. — The United States Chamber of Commerce today welcomed introduction of legislation that will expand the availability of health coverage for workers at America's small businesses.

"Allowing small businesses to pool health care costs will help increase the availability of affordable health coverage and reduce the number of uninsured Americans," said Rolf Lundberg, Chamber senior vice president for congressional and government affairs. "By allowing small businesses to pool together, they will have the increased clout, economies of scale and bargaining power possessed by larger companies and unions to offer high-quality, lower-cost health plans to their workers."

The Chamber applauded U.S Rep. Ernie Fletcher (R-KY) for introducing the Small Business Health Fairness Act, along with cosponsors U.S. Reps. Sam Johnson (R-TX), Cal Dooley (R-CA) and Nydia Velazquez (D-NY).

Health coverage is one of the most sought after benefits and it typically constitutes 10% to 15% of workers' total compensation, according to the Chamber. A recent report by the Department of Labor highlighted the advantages of allowing association health plans, which the department estimates would expand high quality coverage to millions of uninsured working families.

The Chamber supports allowing association health plans to be established and operated under the Employee Retirement Income Security Act, but strongly opposes any attempt to add new mandates or expand employers' liability for the health coverage they voluntarily provide their employees.

"Congress needs to focus on increasing the number of Americans with health care coverage, not new mandates that only increase the cost," Lundberg warned.

The Chamber has joined a coalition to support passage of this bill. The coalition has established a Web site at www.AHPsNow.com.

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03-23