[Congressional Record Volume 153, Number 103 (Monday, June 25, 2007)]
[Senate]
[Pages S8361-S8363]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself, Mr. Kerry, and Mr. Bennett):
  S. 1690. A bill to establish a 4-year pilot program to provide 
information and educational materials to small business concerns 
regarding health insurance options, including coverage options within 
the small group market; to the Committee on Small Business and 
Entrepreneurship.
  Ms. SNOWE. Mr. President, as ranking member of the Senate Committee 
on Small Business and Entrepreneurship, I have long believed that it is 
my responsibility and the duty of this chamber to help small 
businesses, as they are the driver of this Nation's economy, 
responsible for generating approximately 75 percent of net new jobs 
each year.
  Today, I rise with Senators Kerry and Bennett to introduce 
legislation

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that would address the crisis that faces small businesses when it comes 
to purchasing quality, affordable health insurance. This is not a new 
crisis. Over 46 million Americans are currently uninsured. We have now 
experienced double digit percentage increases in health insurance 
premiums in 4 of the past 6 years. Small businesses face difficult 
choices in seeking to provide affordable health insurance to their 
employees. The time to act is now.
  Study after study tells us that the smallest businesses are the ones 
least likely to offer insurance and most in need of assistance. 
According to the Employee Benefit Research Institute, of the working 
uninsured, who make up 83 percent of our Nation's uninsured population, 
60.6 percent either work for a small business with fewer than 100 
employees or are self-employed. Furthermore, many of the small 
businesses whom we meet with tell us how they feel like the cost and 
complexity of the health care system has moved health insurance far 
beyond their reach.
  That is why today we introduce the Small Business Health Insurance 
Options Act of 2007. This bipartisan measure would establish a pilot, 
competitive matching-grant program for Small Business Development 
Centers, SBDCs, to provide educational resources and materials to small 
businesses designed to increase awareness regarding health insurance 
options available in their areas. Recent research conducted by the 
Healthcare Leadership Council has found that following a brief 
education and counseling session, small businesses are up to 33 percent 
more likely to offer health insurance to their employees.
  Our bill capitalizes on the well-established national SBDC framework. 
SBDCs are one of the greatest business assistance and entrepreneurial 
development resources provided to small businesses that are seeking to 
start, grow, and flourish. Currently, there are over 1,100 service 
locations in every State and territory delivering management and 
technical counseling to prospective and existing small business owners.
  Our legislation would require the Small Business Administration to 
provide up to 20 matching grants to qualified SBDCs across the country. 
No more than two SBDCs, one per State, would be chosen from each of the 
SBA's 10 regions. The grants shall be more than $150,000, but less than 
$300,000, and shall be consistent with the matching requirement under 
current law. In creating the materials for their grant programs, 
participating SBDCs should evaluate and incorporate relevant portions 
of existing health insurance options, including materials created by 
the Healthcare Leadership Council, the Kaiser Family Foundation, and 
the National Association of Insurance Commissioners.
  Enacting this legislation is an important step in the right direction 
towards assisting small businesses as they work to strengthen 
themselves, remain competitive against larger businesses that are able 
to offer affordable health insurance, and in turn bolster the entire 
economy.
  We encourage our colleagues to join us in supporting this bill, and 
to continue to work to address the issues facing the small business 
community.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1690

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Health 
     Insurance Options Act of 2007''.

     SEC. 2. HEALTH INSURANCE OPTIONS INFORMATION FOR SMALL 
                   BUSINESS CONCERNS.

       (a) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Administration.--The term ``Administration'' means the 
     Small Business Administration.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Administration.
       (3) Association.--The term ``association'' means an 
     association established under section 21(a)(3)(A) of the 
     Small Business Act (15 U.S.C. 648(a)(3)(A)) representing a 
     majority of small business development centers.
       (4) Participating small business development center.--The 
     term ``participating small business development center'' 
     means a small business development center described in 
     section 21 of the Small Business Act (15 U.S.C. 648) that--
       (A) is accredited under section 21(k)(2) of the Small 
     Business Act (15 U.S.C. 648(k)(2)); and
       (B) receives a grant under the pilot program.
       (5) Pilot program.--The term ``pilot program'' means the 
     small business health insurance information pilot program 
     established under this section.
       (6) Small business concern.--The term ``small business 
     concern'' has the meaning given that term in section 3 of the 
     Small Business Act (15 U.S.C. 632).
       (7) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the Virgin Islands, American 
     Samoa, and Guam.
       (b) Small Business Health Insurance Information Pilot 
     Program.--The Administrator shall establish a pilot program 
     to make grants to small business development centers to 
     provide neutral and objective information and educational 
     materials regarding health insurance options, including 
     coverage options within the small group market, to small 
     business concerns.
       (c) Applications.--
       (1) Posting of information.--Not later than 90 days after 
     the date of enactment of this Act, the Administrator shall 
     post on the website of the Administration and publish in the 
     Federal Register a guidance document describing--
       (A) the requirements of an application for a grant under 
     the pilot program; and
       (B) the types of informational and educational materials 
     regarding health insurance options to be created under the 
     pilot program, including by referencing materials and 
     resources developed by the National Association of Insurance 
     Commissioners, the Kaiser Family Foundation, and the 
     Healthcare Leadership Council.
       (2) Submission.--A small business development center 
     desiring a grant under the pilot program shall submit an 
     application at such time, in such manner, and accompanied by 
     such information as the Administrator may reasonably require.
       (d) Selection of Participating Small Business Development 
     Centers.--
       (1) In general.--The Administrator shall select not more 
     than 20 small business development centers to receive a grant 
     under the pilot program.
       (2) Selection of programs.--In selecting small business 
     development centers under paragraph (1), the Administrator 
     may not select--
       (A) more than 2 programs from each of the groups of States 
     described in paragraph (3); and
       (B) more than 1 program in any State.
       (3) Groupings.--The groups of States described in this 
     paragraph are the following:
       (A) Group 1.--Group 1 shall consist of Maine, 
     Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode 
     Island.
       (B) Group 2.--Group 2 shall consist of New York, New 
     Jersey, Puerto Rico, and the Virgin Islands.
       (C) Group 3.--Group 3 shall consist of Pennsylvania, 
     Maryland, West Virginia, Virginia, the District of Columbia, 
     and Delaware.
       (D) Group 4.--Group 4 shall consist of Georgia, Alabama, 
     North Carolina, South Carolina, Mississippi, Florida, 
     Kentucky, and Tennessee.
       (E) Group 5.--Group 5 shall consist of Illinois, Ohio, 
     Michigan, Indiana, Wisconsin, and Minnesota.
       (F) Group 6.--Group 6 shall consist of Texas, New Mexico, 
     Arkansas, Oklahoma, and Louisiana.
       (G) Group 7.--Group 7 shall consist of Missouri, Iowa, 
     Nebraska, and Kansas.
       (H) Group 8.--Group 8 shall consist of Colorado, Wyoming, 
     North Dakota, South Dakota, Montana, and Utah.
       (I) Group 9.--Group 9 shall consist of California, Guam, 
     American Samoa, Hawaii, Nevada, and Arizona.
       (J) Group 10.--Group 10 shall consist of Washington, 
     Alaska, Idaho, and Oregon.
       (4) Deadline for selection.--The Administrator shall make 
     selections under this subsection not later than 6 months 
     after the later of the date on which the information 
     described in subsection (c)(1) is posted on the website of 
     the Administration and the date on which the information 
     described in subsection (c)(1) is published in the Federal 
     Register.
       (e) Use of Funds.--
       (1) In general.--A participating small business development 
     center shall use funds provided under the pilot program to--
       (A) create and distribute informational materials; and
       (B) conduct training and educational activities.
       (2) Content of materials.--
       (A) In general.--In creating materials under the pilot 
     program, a participating small business development center 
     shall evaluate and incorporate relevant portions of existing 
     informational materials regarding health insurance options, 
     including materials and resources developed by the National 
     Association of Insurance Commissioners, the Kaiser Family 
     Foundation, and the Healthcare Leadership Council.
       (B) Health insurance options.--In incorporating information 
     regarding health insurance options under subparagraph (A), a 
     participating small business development center shall provide 
     neutral and objective information regarding health insurance 
     options in the geographic area served by the participating 
     small business development center,

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     including traditional employer sponsored health insurance for 
     the group insurance market, such as the health insurance 
     options defined in section 2791 of the Public Health Services 
     Act (42 U.S.C. 300gg-91) or section 125 of the Internal 
     Revenue Code of 1986, and Federal and State health insurance 
     programs.
       (f) Grant Amounts.--Each participating small business 
     development center program shall receive a grant in an amount 
     equal to--
       (1) not less than $150,000 per fiscal year; and
       (2) not more than $300,000 per fiscal year.
       (g) Matching Requirement.--Subparagraphs (A) and (B) of 
     section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) shall apply to assistance made available under the 
     pilot program.
       (h) Reports.--Each participating small business development 
     center shall transmit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives, a quarterly report 
     that includes--
       (1) a summary of the information and educational materials 
     regarding health insurance options provided by the 
     participating small business development center under the 
     pilot program; and
       (2) the number of small business concerns assisted under 
     the pilot program.
       (i) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section--
       (A) $5,000,000 for the first fiscal year beginning after 
     the date of enactment of this Act; and
       (B) $5,000,000 for each of the 3 fiscal years following the 
     fiscal year described in subparagraph (A).
       (2) Limitation on use of other funds.--The Administrator 
     may carry out the pilot program only with amounts 
     appropriated in advance specifically to carry out this 
     section.
                                 ______