[Congressional Record Volume 151, Number 104 (Wednesday, July 27, 2005)]
[Extensions of Remarks]
[Page E1637]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS HEALTH FAIRNESS ACT OF 2005

                                 ______
                                 

                               speech of

                         HON. JAMES R. LANGEVIN

                            of rhode island

                    in the house of representatives

                         Tuesday, July 26, 2005

  Mr. LANGEVIN. Mr. Speaker, I rise in opposition to H.R. 525, the 
Small Business Health Fairness Act. I am deeply concerned that this 
legislation will jeopardize valuable patient protections for all 
Americans. While pooling insurance risks may allow employers to 
strengthen their bargaining power with insurance carriers and share 
administrative functions, the methods outlined in this bill would 
threaten the quality of health plans available to small business 
employees, and the stability of the market for small businesses without 
access to trade associations.
  This legislation establishes association health plans by removing 
them from state oversight--including the application of state patient 
protections and solvency standards. For example, my home state of Rhode 
Island is one of 15 states to mandate health insurance coverage of a 
colorectal cancer screening test. My constituents value this 
protection. But under this legislation, my constituents could find 
themselves enrolled in association health plans that are not required 
to follow that and other state laws designed to increase access to 
preventative care and screenings.
  In addition, this bill permits association health plans to offer 
coverage to specific types of employers, allowing plans to seek 
memberships with better risks and less costly populations. This 
``cherry picking''--skimming off the healthiest consumers and leaving 
the sickest patients uninsured--will force premiums even higher for the 
majority of the market. A recent Congressional Budget Office study 
estimated that costs would decline for the 20 percent of businesses 
that join AHPs, but would therefore go up for the remaining 80 percent.
  Alternatively, the Democratic substitute would provide small business 
and their employees access to small employer health pools, without the 
negative features of H.R. 525, by including a number of protections for 
businesses and their employees. The substitute amendment provides that 
participating health insurance companies will remain subject to the 
requirements of state health insurance laws and stipulates that all 
participating insurers offer benefits equivalent to or greater than the 
options offered to Federal employees. There are ways to accomplish the 
goal of increased access to health insurance that do not threaten that 
patient protections and state laws that Americans have come to rely on.
  Small business employers and their workers do need better access to 
affordable health care coverage, but this misguided bill is not the way 
to accomplish that important goal. As we look for innovative ways to 
provide health care to all, we must not sell small business owners and 
employees short. We must address the health care crisis, and we must do 
it in a way that does not exacerbate the existing problems. I urge my 
colleagues to vote against H.R. 525.

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