[Congressional Record Volume 148, Number 126 (Tuesday, October 1, 2002)]
[Senate]
[Pages S9683-S9684]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     HIGH COST OF HEALTH INSURANCE

  Mr. BOND. Madam President, there is another matter that is extremely 
important for small businesses in this country; that is, the high cost 
of health insurance.
  I have, along with my colleague, Senator Hutchinson from Arkansas, 
introduced a measure to authorize association of health plans so small 
businesses can come together in trade associations or other multistate 
bodies with similar interests to purchase their health insurance with a 
large pool.
  If you purchase as an individual or as a very small business, it is 
like going into the store and buying soda one can at a time. You can't 
get a very good price. It also costs you a lot more in administrative 
costs to administer that plan if you are the sole administrator. From 
the health insurance standpoint, you don't share the risks over a broad 
group of people so that you can make an actuarially sound determination 
of how much health insurance costs.
  We have seen health insurance costs rising all across the Nation.
  Early last month, I hosted my second National Conference for Women 
and Small Business Owners in St. Louis. And not surprisingly, some 72 
percent of them said providing health insurance, which is extremely 
costly, was one of the most important challenges they face.

  We also found another statistic that I found very amazing. We have 39 
or 40 million people without health insurance in the country today. 
That is far too many. But did you know that 60 percent--roughly 24 
million of those

[[Page S9684]]

people--are either employees, employers, or members of the families of 
people employed in small business? Some 24 million people are without 
health insurance today because their chief breadwinner belongs to a 
small business that cannot afford health insurance.
  I think that is just too many. The high costs of health insurance 
have made it difficult for small businesses to get the health insurance 
coverage they need. They do not have the bargaining power. They cannot 
spread the administrative cost. They cannot spread the risk. Basically, 
they cannot get as good a deal as a large corporation or a union or the 
Government can get.
  We are very fortunate, as Federal employees, to have access to the 
Federal Employees Health Benefits Program. That is because we have a 
great big pool and we can bargain to get the best rates and we have 
choices from health insurance providers. Those choices are not 
available to small business. So we have developed a plan, with the full 
support and leadership of the President, to authorize establishing 
association health plans. The time has come for those health plans to 
be set up by legislation.
  On Monday of this week, we found that there has been a jump in the 
number of those Americans without health insurance. It is extremely 
timely.
  Yesterday, I understand, the Secretary of Labor wrote to the majority 
leader and asked that we bring up and try to pass association health 
plans. It has already been passed by the House. It is just sitting 
here.
  We need to pass it. I hope before we get out of here--I hope that is 
October 11; I am not sure from what the majority leader said whether we 
will make it by October 11--but before we go, I hope we have a vote on 
association health plans.
  The Secretary of Labor has said this is the highest priority. And the 
Secretary of Labor would be the one who would regulate these plans to 
make sure they do not cherry-pick, that they are financially sound, and 
that they meet the requirements of the law.
  The law is carefully structured to prevent picking out only healthy 
insured groups. You could not set up a group of fitness instructors, 
for example, in a health plan because that would take the lowest risk 
people and give them an unfair advantage over others, when health 
insurance is supposed to spread the risk over a broad population.
  Association health plans are just one, but a very important, step we 
need to take in assuring that a significant number of those 24 or more 
million Americans who do not have health insurance get it.
  This is something I have heard from small business groups, as I have 
listened to them in my State and across the country, in forums of all 
sizes. We get e-mails. We do not get letters very often; they still get 
held up in the radiation process, but when we do get letters, they are 
still talking about the high cost of health care.
  Association health plans are one way we could give small business the 
power to deal with the high cost of health insurance. I have spoken to 
my colleagues about this before. This has been an item of great 
interest in our Small Business Committee. I hope more colleagues will 
look into this question of getting adequate and affordable health 
insurance coverage through association health plans.
  The President has made a very strong and clear statement in favor of 
association health plans. I would hope this body could follow the 
leadership of the House of Representatives, which has already passed 
the association health plan legislation. This would be something very 
important we could do for small businesses and their employees and 
their employees' families.
  Madam President, I am happy to respond to questions from my 
colleagues to provide them further information. I invite their 
attention and I hope we can get action on that measure.
  Madam President, I yield the floor. Seeing no one seeking 
recognition, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. BOND. Madam President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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