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All Workers Deserve Health Insurance Coverage

Posted on: Thursday, 23 March 2006, 15:00 CST

By Bill Frist

Many of the nation's small businesses cannot afford to offer health coverage to their employees. Last week the Senate Health, Education, Labor and Pensions (HELP) Committee acted to change that by passing the landmark Health Insurance Marketplace Modernization and Affordability Act (HIMMAA).

This legislation would allow firms to band together in small business health plans (SBHPs) and negotiate health insurance options as a group. With combined purchasing power, the SBHPs can obtain more affordable coverage plans for their members.

This is great news for the nearly 1 million Tennesseans who work for small businesses, as well as the 27 million other Americans who rely upon small businesses for their health care. These individuals account for the largest segment of the nation's uninsured population.

A recent study estimates the legislation would lower insurance premiums 12 percent, resulting in savings of up to $1,000 per employee. The study also found that small business health plans could reduce the number of uninsured workers by nearly 8 percent, potentially resulting in 1 million newly insured individuals.

This commonsense legislative solution comes at a time when America's health insurance system is in critical condition. Most American workers expect to receive insurance through their employer, but 81 percent of those without insurance are actually members of working families.

It is unacceptable for any American to go without access to health insurance, but when only 60 percent of the nation's employers offer health insurance, it is a sign that our system has serious, fundamental flaws.

Insurance premiums have gone up 73 percent since 2000, and the cost to companies of providing health insurance has nearly doubled within the same period. It is no wonder that the number of employers providing coverage has been steadily declining over the past five years.

Predictably, 73 percent of firms that do not offer health coverage to their workers identify cost as a primary factor in their decision.

Excessive state mandates - requirements that insurance policies cover specific medical services - are clearly pricing many Americans out of the health insurance market. The Government Accountability Office found that such mandates add between 5 and 22 percent to the cost of a typical health insurance plan. The Congressional Budget Office estimates that every 1 percent increase in insurance costs results in 200,000 to 300,000 more uninsured Americans.

Workers who do not feel they need the extensive coverage mandated by some states should have the right to choose a more affordable plan that fits their needs. Under small business health plans, they will have this option.

Of the 20 million working Americans without health insurance, 49 percent are self-employed or work in firms with fewer than 25 employees. By contrast, 98 percent of companies with 200 or more employees offer health benefits.

Hard-working Americans should not be denied employer-provided health insurance simply because they happen to work for a small business. This is why the small business community has urged Congress to take action.

In the past decade, the U.S. House has approved association health plan (AHP) legislation eight times to allow small businesses to pool members together to purchase insurance. Since AHP legislation allowed bypassing of state regulations, often stricter and potentially more costly than federal regulation, the bill never gained a strong footing in the Senate.

This stalemate finally came to an end last week when the HELP Committee passed the HIMMAA after months of negotiations among stakeholders on all sides of the AHP issue, including small businesses, insurers and regulators. The bill draws on the best aspects of the current AHP legislation while responding to concerns regarding self-insurance and adverse selection that had stalled this health insurance legislation for a decade.

As a physician, I am deeply troubled by the number of uninsured Americans. Studies show that those without health insurance put off seeking medical treatment or avoid it altogether, often leading to more serious conditions that could have been avoided with proper preventive care. According to calculations by the Institute of Medicine, as many as 18,000 Americans die prematurely each year because they do not have health insurance.

Unaffordable health care hurts Americans and leads to lower wages and lost jobs by impeding the country's competitiveness in the global market. The best solution to this health care crisis is to create more choice and competition in the health insurance marketplace while allowing businesses and entrepreneurs to come together to negotiate affordable options.

The Health Insurance Marketplace Modernization and Affordability Act accomplishes these goals, and I intend to bring it to the Senate floor as soon as possible.

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When only 60 percent of the nation's employers offer health insurance, it is a sign that our system has serious, fundamental flaws, observes physician and U.S. Senator Bill Frist.

Bill Frist, R-Tenn., is majority leader of the U.S. Senate and a cardiothoracic surgeon.

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Source: Commercial Appeal, The

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