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SEMA Urges President Bush to Emphasize Need for 'Small Business Health Fairness Act' in State of the Union Address

Posted on: Monday, 30 January 2006, 21:00 CST

SEMA, the Specialty Equipment Market Association, delivered a letter to President Bush urging him to place special emphasis on the need for passage of the "Small Business Health Fairness Act" (HR 525, S 406) in his State of the Union address. The legislation will allow trade associations to offer national health plans to their members. The U.S. House of Representatives has passed the SEMA-supported legislation and attention is now focused on the Senate to do the same.

SEMA represents the $31 billion specialty automotive industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs, crossovers and recreational vehicles. Founded in 1963, the trade association has 6,466 member companies, including manufacturers, distributors and retailers, and most of which are small business.

"Enactment of this measure would extend health care coverage to millions of uninsured Americans, including many SEMA members," relayed Chris Kersting, SEMA's president and CEO, to President Bush. "Your endorsement in the State of the Union address and in follow-up speeches and meetings will place a spotlight on this much-needed reform."

Congress can significantly reduce the number of uninsured citizens by authorizing "Small Business Health Plans" - also known as "Association Health Plans" (AHPs) - thereby allowing trade associations to offer federal health plans rather than 50 separate policies regulated by each state.

Large corporations and trade unions are allowed to offer national health plans that are regulated by the federal government, as is the federal government itself. However, small companies are unable to band together and pool their resources under a federal plan. Instead, they face a 50-state barrier of conflicting rules, where a lack of competition in the insurance industry produces high premiums and double-digit rate increases. AHPs will allow competitively-priced national plans, reduce premium costs and remove millions of Americans from the ranks of the working-uninsured.

An estimated 25 million small-business owners, employees and their families are currently without health insurance. Many more are at risk as health care premiums continue to escalate and companies struggle to balance the costs of manufacturing in the United States with remaining competitive in a global economy. AHP legislation will help address these issues.

SEMA also used the letter as an opportunity to thank President Bush for his steadfast support of AHP legislation. "It is an important step to help provide health insurance to American workers and their families," said Kersting. Text of Letter January 30, 2006 President George W. Bush The White House 1600 Pennsylvania Avenue, NW Washington, DC 20500 Re: SEMA Urges Prominent Reference on Need for "Small Business Health Fairness Act" In State of the Union Address Dear Mr. President: I am writing to urge you to make passage of small business health reform legislation a top priority in this year's State of the Union address. Enactment of this measure (HR 525; S 406) would extend health care coverage to millions of uninsured Americans, including many members of SEMA, the Specialty Equipment Market Association. SEMA represents the $31 billion specialty automotive industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs, crossovers and recreational vehicles. Founded in 1963, the trade association has 6,466 member companies, including manufacturers, distributors and retailers, and most of which are small business. Many hard-working citizens are employed by small businesses that cannot afford skyrocketing health care premiums. Congress can significantly reduce this number by authorizing "Small Business Health Plans" - also known as "Association Health Plans" (AHPs) - thereby allowing trade associations to offer federal health plans rather than 50 separate policies regulated by each state. Large corporations and trade unions are allowed to offer national health plans that are regulated by the federal government, as is the federal government itself. However, small companies are unable to band together and pool their resources under a federal plan. Instead, they face a 50-state barrier of conflicting rules, where a lack of competition in the insurance industry produces high premiums and double-digit rate increases. AHPs will allow competitively-priced national plans, reduce premium costs and remove millions of Americans from the ranks of the working-uninsured. An estimated 25 million small-business owners, employees and their families are currently without health insurance. Many more are at risk as health care premiums continue to escalate and companies struggle to balance the costs of manufacturing in the United States with remaining competitive in a global economy. AHP legislation will help address these issues. The U.S. House of Representatives passed the SEMA-supported AHP legislation last July, marking its eighth time in the last 10 years. Attention is now focused on the U.S. Senate. Your endorsement in the State of the Union address and in follow-up speeches and meetings will place a spotlight on this much-needed reform. SEMA would like to take this opportunity to thank you for your steadfast support of AHP legislation. It is an important step to help provide health insurance to American workers and their families. Thank you for your consideration. Sincerely, Christopher J. Kersting President & CEO Specialty Equipment Market Association (SEMA)

Source: Business Wire

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