DeGette Backs Plan to Expand Small Business Health Care Coverage

DeGette Backs Plan to Expand Small Business Health Care Coverage

WASHINGTON, DC - U.S. Rep. Diana DeGette (D-CO) strongly supported a Democratic proposal today to provide small business owners with the resources to give health care coverage to their employees. The legislation was offered as an alternative to the association health plans (AHP) pushed by the House leadership and insurance trade associations.

"This debate isn't a contest to see who best understands the difficulties small businesses face when it comes to providing their employees health care insurance," said Rep. DeGette, a member of the Energy and Commerce Subcommittee on Health. "It is about finding the best solution. We seek to give small employers the ability to provide health insurance to all of their workers by giving then access to a plan similar to that enjoyed by all federal employees. This is cost effective and would provide coverage to as many as 33 million of the 45 million Americans who are currently uninsured."

The Democratic plan would give small employers the ability to provide the same access to health benefits as federal employees. It would also allow states to establish small employer health pools, minimize adverse selection and use state-licensed insurers without preempting state laws.

The House leadership's AHP proposal would create new health plans exempt from state oversight that could cherry-pick younger workers from small businesses. This would increase health insurance rates for the vast majority of small employers while failing to provide health care coverage for many people who are currently uninsured. In fact, the Congressional Budget Office estimated that only 600,000 additional people would receive health insurance through AHPs, while costs would increase for 75 percent of all small businesses.

"Only a very small portion of small businesses would benefit in any way from association health plans (AHPs)," said Rep. DeGette. "Instead, AHPs would merely shift young, healthy workers who are already insured from traditional insurance into this new program. The vast of majority of workers left behind, would face increased premiums and even greater difficulties for those with existing health challenges, or chronic conditions to procure any coverage at all."

http://www.house.gov/apps/list/press/co01_degette/050726b.html