Durbin Health Care Plan for Small Businesses to be Democratic Centerpiece

DURBIN HEALTH CARE PLAN FOR SMALL BUSINESSES TO BE DEMOCRATIC CENTERPIECE

U.S. Senator Dick Durbin (D-IL) today was joined by fellow Senate Democrats in introducing legislation to give small businesses affordable choices among private health insurance plans and expand access to health care coverage for their employees. Durbin said that his bill, the Small Employers Health Benefits Program (SEHBP), will be offered as an alternative to the Republican health insurance bill scheduled for consideration in the Health, Education, Labor and Pensions Committee on Wednesday. Durbin has offered similar legislation in the past.

As the lead sponsor of the bill, Durbin said, "There are 1.8 million people in Illinois with no health insurance and thousands more who are under-insured. Contrary to popular belief, most of the people in Illinois who don't have insurance are not out of work -- in fact, they work full time in small businesses that cannot afford health insurance for their workers. Small business owners in Illinois and across America are trying to do their part to help provide their employees with health insurance, but they are struggling with annual double-digit premium increases. This bill helps solve that problem. "

The Small Employers Health Benefits Program (SEHBP) would allow small businesses across America to band together for lower health care prices by pooling their purchasing power and spreading their risk over a large number of participants. Employers would qualify for an annual tax credit to partially offset contributions on behalf of low-income employees.

The SEHBP is modeled after the highly successful Federal Employees Health Benefits Program (FEHBP), which has offered more than eight million government employees and retirees, including members of Congress and their staffs, a wide range of private health insurance choices for more than 40 years. SEHBP would give employees of small businesses access to a comparable range of private health plans.

Durbin said that when he meets with small business owners across Illinois, he frequently hears stories of how skyrocketing health insurance costs are hurting both small business owners and their employees. Take the story of Jeff Ryan, a regular fixture around the University of Illinois campus, and owner of Rock's, a local restaurant in Champaign, Illinois.

After working for over 16 years in the beverage distribution business, Ryan was able to make a life-long dream come true, opening Rock's in 2003, employing approximately 60 people. Last December, Ryan's kitchen manager slipped on the ice and separated his shoulder, resulting in over $2,000 in emergency room costs and doctor bills. Shortly after that incident, one of the cooks needed expensive antibiotics and a young man employed as the dishwasher required costly surgery. Jeff Ryan, like thousands of small business owners across the state and the country, wants to cover his employees' health care costs but simply cannot afford to.

"The simple fact is health insurance for these employees, in our situation, is unaffordable. I can't cover my guys, and it hurts me," Ryan wrote in a letter to Durbin. "I would contribute as an employer what we can afford, but the situation as it exists today is impossible. We must remain profitable to remain open, but if we were to pay the premiums quoted for the individuals needing coverage we would not remain profitable."

"With today's coverage options, small businesses are unfairly forced to make a choice between taking care of their employees and paying the bills that keep their doors open," said Durbin. "The high cost of health insurance is the top concern for small businesses in Illinois and across America. My Small Business Health Benefits Program will give employees of small businesses the same kinds of health care choices Members of Congress already have, for less than they pay now, while making it affordable for owners to provide it. With 46 million uninsured Americans in our country, SEHBP could be a lifeline to millions of workers who are without affordable, quality health insurance."

The revised version of the bill incorporates technical changes and adds additional cosponsors to the measure. Co-sponsors include U.S. Senators Harry Reid (D-NV), Ted Kennedy (D-MA), Jeff Bingaman (D-NM), Hilary Clinton (D-NY), and Blanche Lincoln (D-AR).

http://durbin.senate.gov/record.cfm?id=252258&&