After a contentious debate regarding regulations for the establishment of Association Health Plans (AHPs), the House Education and the Workforce Subcommittee on Employer-Employee Relations approved, 13-8, a bill (H.R. 660) designed to make health care more affordable for small businesses.
Sponsored by Rep. Ernie Fletcher (R-KY), the Small Business Health Fairness Act of 2003 would allow small businesses to come together to form associations for the purpose of purchasing health insurance at more affordable group rates. The bill would establish rules governing these associations, including certification, sponsorship, participation, coverage, contribution rates, benefit options, and termination. Regulation of AHPs would be overseen by the Department of Labor, rather than the states.
Subcommittee Chair Sam Johnson (R-TX) praised the bill, saying it would “significantly expand access to health coverage for uninsured Americans.” Noting that 41 million Americans were uninsured in 2002, an increase over the previous year largely due to declining coverage in the small employer market, Rep. Johnson said, “The cost-savings benefits of AHPs would help the small employers of Main Street access coverage at a more affordable price.”
While agreeing with the thrust of the bill, Ranking Member Robert Andrews (D-NJ) expressed his concern about whether the bill would have a significant impact on the number of uninsured individuals, particularly given a Congressional Budget Office’s estimate that the bill would provide coverage for roughly 300,000 additional individuals.
Democrats offered a number of amendments aimed at requiring AHPs to provide certain benefits, all of which were defeated on party-line votes. A number of the amendments would have required coverage for certain women’s health-related screening tests, including:
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