[Congressional Record Volume 140, Number 68 (Thursday, May 26, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               SMALL BUSINESS HEALTH INSURANCE CHOICE ACT

                                 ______


                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                         Thursday, May 26, 1994

  Mr. MANZULLO. Mr. Speaker, today I have introduced legislation that 
would give small businesses in my district and across America the 
ability to pool together, the right to choose their own health 
insurance policies, a 100-percent tax deduction for health insurance 
premiums for the self-employed, an elimination of pre-existing 
conditions in all health insurance policies, and the needed relief from 
antitrust laws.
  The health insurance system of today creates expensive barriers by 
mandating certain state benefits, with the ability to deny insurance 
coverage to certain individuals with pre-existing health conditions. 
With these costly mandates, and the inability to purchase insurance 
because of a pre-existing condition, small business owners and 
employees opt out of coverage because it is too expensive to obtain.
  Mr. Speaker if small businesses like the town barbershop, with 3 
employees, the hardware store with 15 employees, and the pet store with 
8 employees try individually to obtain insurance coverage, each of them 
will find that the coverage is too expensive because they do not have 
the purchasing power of larger businesses. The Small Business Health 
Insurance Choice Act will provide the incentive these small businesses 
need to group together. Then the barbershop, hardware store, and the 
pet shop will have 26 employees for a stronger purchasing power for 
less expensive coverage. These small employers can join with hundreds 
of employers to increase the number of insured.
  My bill will permit employers the freedom to bypass these costly 
benefit mandates. Every small business will have the power, without 
mandates, to voluntarily develop the best insurance policy for all its 
employees. Moreover, with the repeal of the pre-existing condition 
clause, employers and employees will no longer fear high premium costs 
and rejected health coverage. My health care reform proposal will, in 
turn, increase the availability of coverage, and will produce a sharp 
reduction in health care costs to the Nation.
  Mr. Speaker, this legislation will also give the self-employed the 
same tax breaks as large organizations by allowing the self-employed to 
deduct 100 percent of all health care insurance costs. A simple change 
to the Internal Revenue Code of 1986 would add tens of thousands of 
currently uninsured sole-proprietors and self-employed to the ranks of 
the insured.
  Furthermore, with the removal of costly antitrust barriers, health 
care costs will be radically lower. With the removal of antitrust laws, 
two or more health care providers can apply to form a joint venture. 
These joint ventures will lower unnecessary and redundant purchasing of 
large and expensive medical equipment and treatment areas.
  In conclusion, the Small Business Health Insurance Choice Act will 
aid small businesses as soon as this legislation is passed. It is a 
step that we can take today to improve the health care delivery system 
of tomorrow.
  Mr. Speaker, I know that all Americans are in agreement that 
something needs to be done to lower health care cost and increase 
access to health care providers. This legislation answers that call, 
but does so by promoting the importance of choice, quality, and 
availability of excellent medical care.
  I am eager to work with the administration and with my colleagues of 
both parties to achieve the important goal of health care reform. I 
strongly believe that the Small Business Health Insurance Choice Act 
will aid in reaching this goal, and it is my hope that other Members of 
Congress will join me in supporting this legislation.

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