[Congressional Record Volume 143, Number 56 (Monday, May 5, 1997)]
[Extensions of Remarks]
[Pages E830-E831]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  H.R. 1515 EPHIC LEGISLATION TO MAKE HEALTH INSURANCE AFFORDABLE FOR 
         SMALL BUSINESS WORKERS AND THEIR SPOUSES AND CHILDREN

                                 ______
                                 

                         HON. HARRIS W. FAWELL

                              of illinois

                    in the house of representatives

                          Thursday May 1, 1997

  Mr. FAWELL. Mr. Speaker, William F. Goodling, Majority Leader Richard 
K. Armey, Representative J. Dennis Hastert, Representative Susan 
Molinari, Representative James A. Leach, Representative Owen Pickett, 
Representative James P. Moran, Representative William O. Lipinski, 
Representative Glenn Poshard, James A. Traficant, Jr., and 
Representative Gary A. Condit, are among the 113 cosponsors who are 
joining me today in introducing the Expanded Portability and Health 
Insurance Coverage Act [EPHIC].
  Similar legislation is also being introduced in the Senate by Tim 
Hutchinson, and others.

[[Page E831]]

The bipartisan EPHIC legislation will make health coverage more 
affordable and accessible to millions of small business workers and 
their spouses and children. EPHIC will help make insurance more 
affordable, by expanding coverage and lowering costs; more accessible, 
by removing barriers and increasing choice through association plans; 
and more secure, by improving continuity of coverage and consumer 
protections.
  The problem of the uninsured, both children and adults, is a problem 
of small businesses lacking access to affordable health coverage. Over 
80 percent of the 40 million uninsured Americans live in families with 
an employed worker who is likely to work for a small employer or be 
self-employed. Over 80 percent of all uninsured children are in 
families with working parents. Nearly two-thirds of these parents work 
for small businesses.
  To address the affordability problem of the uninsured, EPHIC would 
give franchise networks, union collectively bargained plans, bona-fide 
trade, business and professional associations ie.g., retailers, 
wholesalers, printers, agricultural workers, grocers, and churches--and 
organizations such as chambers of commerce and the National Federation 
of Independent Business [NFIB] the ability to form regional and 
national group health plans. These Association Health Plans would enjoy 
the economies-of-scale allowing them to fully insure or self-insure the 
workers, spouses, and children of America's small businesses, just as 
large- and mid-sized businesses have been able to do for 23 years under 
ERISA.
  The pooling allowed under EPHIC will bring to America's small 
businesses immensely increased economies-of-scale to effectively 
bargain with providers and insurers, uniformity of plans, freedom from 
costly State mandated benefits, and significantly lower overhead costs. 
It is estimated that employers could save as much as 30 percent in 
overhead costs and that up to one-half of the 40 million uninsured 
would find accessible and affordable health care in the private market.
  The newly formed Association Health Plans will be able to replicate 
for small- and medium-sized employers the recent success large 
employers have had in limiting health cost increases to less than the 
rate of inflation. EPHIC would thus expand coverage and do so through 
the private market without new taxes or costly mandates.
  In summary, EPHIC will help millions of employees, especially those 
who work for small businesses, to obtain health insurance. Mandates 
have driven costs up and, if expanded, will further discourage 
employers from providing health insurance to their workers. In 
contrast, this legislation will lower costs and increase choice to make 
it easier for employees to purchase affordable health coverage.

                          ____________________