Association Health Plans Endorsed by Senate Task Force - 5/17/2004 - Insurance Lawyers Taxes

Association Health Plans Endorsed by Senate Task Force

NAHB has been a strong advocate of the plans as a solution for the skyrocketing health care costs over the past decade that have driven many small businesses out of the health insurance market entirely, forcing them to abandon coverage for their employees.

NAHB President Bobby Rayburn said that the association health plan legislation endorsed by the Senate task force would “decrease administrative costs and allow small business owners to negotiate better rates with insurers, enabling them to purchase quality health care at a lower cost for their families and employees.”

According to the U.S. Census Bureau, more than 43 million Americans currently have no health insurance, and approximately 60% of them are in families headed by an employee of a small business.

To correct this situation, Senate bill S. 545 — sponsored by Senators Olympia Snowe (R-ME), Christopher Bond (R-MO), Robert Byrd (D-WV), Norm Coleman (R-MN), Elizabeth Dole (R-NC), Kay Bailey Hutchison (R-TX), John McCain (R-AZ), Arlen Specter (R-PA) and Jim Talent (R-MO) — would allow small business owners to band together across state lines through membership in a bona fide local, state or national trade association to leverage their size, just as large businesses and unions do, to negotiate lower insurance costs and more options.

The measure has the strong backing of the Bush Administration and more than 160 trade associations.

In a related development, the House last week voted once again to approve association health plan legislation, which previously passed the chamber on June 19, 2003. The unusual decision to consider the issue for a second time is part of a larger effort by House Republicans to highlight the legislative strategies Congress should undertake to ensure that America remains competitive in creating new jobs.

“The Small Business Health Fairness Act” was originally introduced as H.R. 660, but during last week’s special vote it received a new bill number, H.R. 4281. The legislation, which was approved by a 252 to 162 margin, is identical to H.R. 660, and was introduced by Reps. John Boehner (R-OH), Sam Johnson (R-TX), Max Burns (R-GA), Nydia Velazquez (D-NY) and Cal Dooley (D-CA).

Before the House vote, NAHB sent a letter to the full chamber urging lawmakers to support the bill, and, to emphasize the importance of this issue to home builders and America's small businesses, designated consideration of the measure as a key vote.

“The Senate task force report and House passage of this measure for a second time shows how sound health care policy can help America’s workers," said Rayburn. "Hopefully, these developments will provide impetus for the Senate to act on companion legislation S. 545 in order to strengthen America’s health care system and ensure that American workers receive the cost-effective, high-quality health care coverage they deserve."

To read the House and Senate legislation, click here and enter the bill number in the box at the upper left.