On July 25, the House approved, 263-165, a bill (H.R. 525) that would allow small businesses to form association health plans (AHPs) for the purpose of purchasing health insurance at more affordable group rates. The House Education and the Workforce Committee approved the measure on March 16 (see The Source, 3/18/05).
During consideration of the bill, Rep. Ron Kind (D-WI) offered a substitute amendment that would have created a Small Employer Health Benefits Program modeled after the Federal Employees Health Benefits Program. Under the substitute, employers with fewer than 100 employees would be required to offer coverage to all employees who have completed three months of service and to pay at least 50 percent of the cost of the premium. The substitute was defeated, 197-230.
The House also rejected, 198-230, a motion to recommit offered by Rep. George Miller (D-CA) that would have required AHPs to comply with state mandates that require health insurance providers to cover pregnancy and childbirth; breast and cervical cancer screenings; reconstructive surgery following mastectomies; children’s health services; and treatment for mental illness, substance abuse, and diabetes.
Arguing that AHPs would “roll back” state laws protecting women and children, Rep. Betty McCollum (D-MN) spoke in support of the motion, stating that it “protects Americans who have access to mental health benefits. It protects families’ access to maternity care and well-baby checks. Maternity coverage is critical for women. It should not be optional. Fortunately, many States require health plans to cover maternity care and well-baby checks for their children. The bottom line is healthy moms equal healthy children. Healthy children, valuing children’s lives, should be a goal we all share.”
Rep. John Boehner (R-OH) said that the motion “would require every AHP to cover every mandate known to man, driving up the cost of those policies and making sure that no new employees would ever be covered by an AHP,” adding, “There are 45 million Americans with no health insurance. While this will not cover all 45 million Americans, it will help some Americans who have no access to health insurance today have access to high-quality, competitively priced health insurance. You can have all the mandates in the world; but if you do not have health insurance, you get no coverage at all. No doctors’ visits. No nothing.”
Sen. Olympia Snowe (R-ME) has introduced an identical bill (S. 406) in the Senate.
