Senator Snowe (R-ME), Chair of the Senate’s Small Business and Entrepreneurship Committee, has announced the introduction of the Senate Association Health Plan (AHP) bill named the Small Business Health Fairness Act of 2003 (Bill # S.545). The original cosponsors of the bill include: Senators Snowe, Kit Bond (R-MO), Jim Talent (R-MO), John McCain (R-AZ), Elizabeth Dole (R-NC), Kay Bailey Hutchison (R-TX), and Norm Coleman (R-MN). This effort follows on the heels of the first-ever stand-alone bill on AHPs, also known as the Small Business Fairness Act (H.R. 660). The bill, which has received significant bipartisan support in the House and boasts more than 150 cosponsors, was approved by a vote of 26-21 in the U.S. House Committee on Education & the Workforce.

Senator Snowe has stated "When the Kaiser 2002 Employer Health Benefits Survey reports that only 61 percent of all small businesses are offering health benefits...is there any question that we're headed in exactly the wrong direction? This is a crisis..."

At a recent press conference regarding the House legislation, Labor Secretary Elaine L. Chao stated that: “President Bush and this administration care deeply about expanding access to affordable health care” to the 41 million uninsured Americans. She also said that two out of every three new jobs are generated by small businesses. Secretary of Labor Chao applauded the quick action of the House Education and Workforce Committee in passing legislation to improve access to affordable, quality health insurance for millions of small businesses and their workers.

"A majority of the 41 million uninsured are working and employed in small businesses. By allowing small employers to access quality, affordable healthcare for their employees through Association Health Plans the number of uninsured workers in the country will decline," said Secretary Chao.

H.R. 660-The Small Business Health Fairness Act-would allow establishment of Association Health Plans (AHPs) by associations that enhance cost savings while protecting low-risk individuals from cherry picking. The legislation also provides strong protections to improve financial solvency, create uniform federal certification standards and deter fraud so that benefits will be paid when workers need them.

"AHPs are uniquely structured to reduce health insurance premiums for small businesses and the self-employed from 9 percent to as much as 25 percent according to a 2002 U.S. Department of Labor (DOL) report..." Jack Faris, director of community strategies for the Bill & Melinda Gates Foundation

AHPs allow small businesses to buy into group health insurance plans anywhere in the country, enabling them to pay much less than they now pay for small policies directly from insurers. The major obstacle to AHPs to date has been varying state benefit mandates. However, this bill would change that by allowing small businesses to be exempt from state-specific mandates.

“We are pleased that our Senator Snowe has sponsored the effort on this important small business issue,” says Joseph Kumiszcza, MESDA Executive Director. “MESDA encourages all of its members to write a letter of support to Senator Snowe for introducing such essential legislation, which has the potential to bring much wanted relief for small businesses and their employees in Maine.”

MESDA members have been especially hard-hit by the skyrocketing costs of health insurance as the majority of all member companies have fewer than 10 employees. MESDA desires to put into action an Association Health Plan to enable Maine’s leading technology companies and their employees affordable protection.

Please contact your Senators:
Senator Olympia J. Snowe
Senator Susan Collins
To voice your support for The Senate Small Business Health Fairness (Bill # S.545)

And your Congressman:
Representative Thomas Allen
Representative Michael Michaud
to voice your support for the House Small Business Fairness Act (H.R. 660)


A Sample Letter follows

The Honorable ___________
U.S. House of Representatives
Washington, DC 20515

OR

The Honorable__________
U.S. Senate
Washington, DC 20510

DATE

Dear Senator/Congressman (SENATOR OR CONGRESSMAN’S LAST NAME)

As the (YOUR TITLE) of (BUSINESS NAME) in (CITY, Maine), I am a constituent of yours, and I have (NUMBER) employees. I am writing to urge you to support H.R. 660/S. 545, the Small Business Health Fairness Act of 2003. This legislation would provide access to affordable, quality health insurance for millions of uninsured Americans through Association Health Plans (AHPs.)

As a small businessperson, I am deeply concerned about the rising costs of insurance - I want to provide good benefits for my employees.

Current Maine laws add disincentives to competition. The AHP’s seem to me to provide opportunity for an increase in the freedom within the marketplace to help drive costs down. Cost is the primary reason small business owners can’t afford to provide health insurance to their employees. AHP legislation would solve this problem. These bills could save small businesses, like mine, 15-30% in health insurance costs and enable more of my employees to obtain health insurance.

(ADD ANY SPECIFIC EXAMPLES OF CONCERN WITHIN YOUR OWN ORGANIZATION HERE)

The majority of Maine businesses is small and does not employ large numbers. A recent Industry survey by MESDA: Maine’s Software and Information Technology Industry Association identified that more than 90% of Maine’s technology companies have fewer than 15 employees. I strongly urge you to allow Maine’s growing technology firms the opportunity to compete with larger companies across the country and support Association Health Plans (AHPs). This bill would allow me to group together with technology companies across Maine to purchase more affordable insurance through my industry association. Large employers are already allowed to take advantage of these economies of scale and administrative efficiencies, and it is only fair to allow small businesses like mine the same opportunity. Without AHPs, I am at a competitive disadvantage and will either end up paying more to provide health benefits to my employees or lose them to larger companies outside Maine. Maine can’t afford to lose more young professionals. I hope I can count on your support for this sensible legislation that will help reduce the number of the uninsured in Maine.

Sincerely,

YOUR SIGNATURE
YOUR CONTACT INFORMATION