[Congressional Record Volume 155, Number 157 (Tuesday, October 27, 2009)]
[House]
[Pages H11794-H11795]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1045
                      CHOOSING HEALTH CARE REFORM

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Virginia (Mr. Connolly) for 5 minutes.
  Mr. CONNOLLY of Virginia. I thank the Speaker.
  I rise today to support the economic engine of America--our small 
businesses. Small businesses represent more than 99 percent of all 
businesses in this country and employ more than 50 percent of the 
private sector, nonfarm workforce. In fact, 25 percent of the total job 
growth from 1992 to 2005 came from those small businesses with

[[Page H11795]]

fewer than 20 employees. For all businesses, large and small, the 
employment growth rate during that period was 19 percent, demonstrating 
that small businesses led the way to economic growth. Simply put, the 
health of America's small businesses is the health of the American 
economy.
  Unfortunately, the cost of keeping the employees of small businesses 
healthy is imperiling the financial health of many of these same 
businesses. Under our current health care system, where larger 
companies pool their risks over larger workforces to purchase insurance 
for lower rates, small businesses are paying up to 18 percent more per 
employee for health care coverage than their larger competitors. Sadly, 
it's easy to see how this happens. Indianapolis small businessman Bruce 
Hetrick testified at a House committee hearing earlier this year that 
his wife and business partner, Pam, got cancer and the insurance 
company said that the premiums for the 15-person firm would rise 28 
percent. When his wife tragically passed away 1 month prior to the 
higher premium taking effect, the insurance company still increased the 
entire firm's premium by 10 percent. Due to the current health care 
system, one illness in a small business can have drastic consequences 
for everybody.
  In fact, from 1999 to 2007, for all businesses, large and small, the 
employer contribution for health insurance coverage for families 
increased 120 percent, from $4,247 to $9,325. Employees did not fare 
any better, as their own individual premiums increased almost 118 
percent in that time period. While large businesses were better 
situated to keep costs down due to bigger risk pools, reduced 
administrative costs and lower insurance broker fees, small businesses 
often have but one unpalatable option with respect to health care.
  More and more small businesses are unable to afford health insurance 
for their employees. In 1995, 68 percent of small businesses offered 
health care. Only 38 percent offered health care this year. While just 
10 percent of employees at large businesses are uninsured, 29 percent 
of employees at firms with fewer than 25 employees have no health 
insurance. Those small businesses that currently offer health care 
often are forced to reduce benefits due to those increasing costs. 
Family deductibles are roughly 60 percent more for companies with fewer 
than 50 employees.
  Without reform, Madam Speaker, small businesses will have to continue 
reducing benefits and increasing costs. According to the National 
Business Group on Health, in 2010, and I quote, employers and employees 
will face shockingly higher health care costs. Madam Speaker, those 
premiums are projected to increase another 10 to 20 percent--next year. 
This year, small businesses will pay $156 billion for their employees' 
health care. Without reform, those costs will more than double to $339 
billion by 2018, just 9 years hence. Over the next decade, small 
businesses will suffer the cumulative impact of these increased costs 
of between $546 billion and $855 billion. In other words, absent 
reform, small businesses' health care costs will hit $2.4 trillion in 
this time period.
  As they have done over the last few years, small businesses will be 
forced to choose between their economic health and the health of their 
employees. Without health care reform, the increased costs over the 
next decade will force many small businesses to lay off employees. 
Those increased costs represent up to 178,000 employees--178,000 
Americans who can lose their jobs because their employers can no longer 
afford the cost of health care.
  Fifty-seven percent of existing small businesses already have had to 
eliminate health care coverage, and more soon will be forced to do the 
same. Twenty-nine percent of small business employees have no insurance 
of any kind. According to the Kaiser Family Foundation's recent survey, 
8 percent of existing businesses said they will eliminate health care 
entirely this next year.
  Increasing health care costs are crippling our small businesses and 
small business employees. Although every company faces increasing 
costs, under the existing health insurance system the economic burden 
falls disproportionately on small businesses.
  Madam Speaker, I support health insurance reform that will lower the 
cost of health care to these small businesses and their employees; and 
I urge adoption of reform.

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