House passes legislation to reduce ranks of uninsured

AHPs help small businesses offer coverage to employees

Washington —Legislation passed by the U.S. House of Representatives tonight would offer health insurance to millions of workers employed by small businesses.  H.R. 525, the Small Business Health Fairness Act, allows small business owners to join together to offer health insurance for their employees.  Citing the need to get the uninsured covered, Congressman Joe Pitts (R, PA-16) supported the bill, which passed the House tonight of 263 to 165.

“According to the U.S. Census Bureau, 45 million American lack health insurance,” said Congressman Pitts, “but it doesn’t have to stay that way.  The Small Business Health Fairness Act would significantly expand access to health coverage for uninsured families across the country by creating association health plans.  These plans allow small business owners to partner with fellow entrepreneurs to purchase health insurance.  AHPs would offer big company benefits for small business employees.” 

The rising cost of health insurance premiums is the number one problem facing small businesses in this country. Estimates indicate that 60 percent or more of the working uninsured work for or depend on small employers who lack the ability to provide health benefits for their workers.

Association Health Plans (AHPs) allow small-business owners to purchase health insurance through their membership in an existing trade association, such as the National Federation of Independent Business, the United States Chamber of Commerce, Associated Builders and Contractors (ABC) or the National Restaurant Association, to purchase health coverage for their families and employees.  Many small-business owners have memberships in several such associations.  This bill allows each owner to choose which association would offer the best plan to his or her employees.  The association acts like a large company in producing a benefits package for employees.

H.R. 525 would increase small businesses’ bargaining power with health care providers, give them freedom from costly state-mandated benefit packages, and lower their overhead costs by as much as 30 percent – benefits that large corporations and unions already enjoy because of their larger economies of scale.

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