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House Committee Examines Affordable Health Care Options for Small Businesses

The House Small Business Committee held a March 6 hearing to discuss ways to expand affordable health care access to small business owners and their employees. Noting that there are 44 million Americans who cannot afford health care, Ranking Member Nydia Velazquez (D-NY) said, “More than 60 percent of the 33 million adults and 11 million children without health insurance are small business owners, their employees or their families.”

The committee heard testimony from Members of Congress, the administration, and advocacy groups on a proposal designed to allow small employers to access more affordable health insurance through Association Health Plans (AHPs), which would empower small businesses to group together to compete for medical coverage. Several witnesses also expressed support for expanded Medical Savings Accounts and tax credits for small businesses.

“An essential part of the solution is to allow small businesses across the country to pool together and access health insurance through their membership with bona fide trade or professional associations,” said Rep. Ernie Fletcher (R-KY), urging the committee to consider legislation (H.R. 660) he sponsored that would create AHPs. The bill also would exempt AHPs from state insurance regulations.

“One million Black business owners who have the charge of economically stimulating low-income communities will support such legislation,” said Harry Alford of the National Black Chamber of Commerce. “We will actively participate in advocating such legislation and will fiercely promote it to our members,” he added. Sen. Jim Talent (R-MO) told the committee that Sen. Olympia Snowe (R-ME) plans to introduce legislation similar to H.R. 660 in the near future. The Senate Small Business Committee held a similar hearing on February 5 (see The Source, 2/7/03).