[Congressional Record Volume 149, Number 74 (Monday, May 19, 2003)]
[House]
[Page H4225]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   SMALL BUSINESS HEALTH FAIRNESS ACT

  The SPEAKER pro tempore (Mr. Cole). Under a previous order of the 
House, the gentlewoman from Tennessee (Mrs. Blackburn) is recognized 
for 5 minutes.
  Mrs. BLACKBURN. Mr. Speaker, last September the U.S. Census Bureau 
released figures that showed that the number of Americans who do not 
have health insurance has increased to more than 41 million Americans. 
Of those, 60 percent are employed by small businesses. We know that a 
great number of these small business owners do want to offer their 
employees health insurance coverage; but with health insurance costs 
rising 14.7 percent just in 2002 alone, they are struggling to meet 
this cost.
  House Resolution 660, the Small Business Health Fairness Act, opens 
the door for small business owners, providing the chance to give their 
employees high-quality health insurance at an affordable price by 
allowing associations to form large regional or national groups that 
can purchase fully insured health insurance which would put growing 
businesses on a level playing field for larger corporations.
  Those opposed to AHPs, as they are called, claim that they will allow 
``cherry picking'' or selecting only employees that are young and/or 
healthy for coverage. In reality, this legislation prohibits an AHP 
from denying health insurance on the basis of health status. They must 
follow the same rules on portability, preexisting conditions, and 
nondiscrimination that large employers must follow.
  This legislation also contains solvency provisions that protect 
employees against the risk of health claims. These health plans must 
certify through a qualified actuary that an AHP is financially sound.
  To conclude, what businesses want is to offer health coverage to 
their workers. House Resolution 660 gives employers the ability to 
provide this coverage by allowing small businesses to band together as 
a trade association to become larger purchasers of health insurance. By 
saving small businesses, an estimated 15 to 30 percent, compared to the 
cost of purchasing coverage directly from an insurance company, 
associated health plans will give more Americans the health benefits 
they need to provide for themselves and for their families.

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