Association Health Plan Legislation (AHP) or
Small Business Helth Plan Legislation
Association Health Plans - AHP were renamed to Small Business Health Plan (SBHP) legislation
Summary:
Association Health Plans (AHPs) will allow small business owners
to band together across state lines through their membership in
a bona fide trade or professional association to purchase health
coverage for their families and employees. For example, many small
business owners may have multiple memberships in the Tire Industry
Association, NFIB, the U.S. Chamber, etc. If AHPs were to become
law, a small business owner could purchase health benefits through
any one of these entities who would in turn act much as the human
resources department of a large company. As a result small business
owners and employees will benefit from the same economies of scale,
purchasing clout, and administrative efficiencies as Fortune 500
companies and union plans. This will result in lower health care
costs and new coverage options for the working uninsured who are
currently faced with no options other than the high priced, over-regulated
plans that may exist in their individual states. Please take a
few moments to contact your two Senators and one U.S. Representative
on this very important issue.
UPDATES:
Small Business Health Plans/Immigration
There has been no activity on either of these issues since the last TIA Fax, with the exception of in-district posturing on immigration (both sides).
Small Business Health Plan (SBHP)
Senator Mike Enzi has not given up hope for a vote on Small Business Health Plan legislation. The coalition will be meeting this month to shore up support and see if something can be done during the upcoming short sessions.
Small Business Health Plan Legislation (SBHP) (6-1-2006)
We dislike being the bearer of bad news but if you haven’t already heard, S.1955 failed on a fairly close vote in the Senate on May 11th. Everyone involved in the SBHP coalition were extremely disappointed after all the efforts extended over the last several years. The 55 votes we garnered for cloture (to end debate you need 60) tells us that we have made tremendous headway. We’ve come farther than we ever have before, and we will be back again with this crucial legislation.
Small Business Health Plan formerly AHP's
There has been non-stop movement over the last couple of days that will be critical for the passage of Small Business Health Plan (SBHP) legislation (formerly known as Association Health Plans - AHP). More than likely we will see the bill open up on the Senate floor and the all-out assault by Democrats will probably include amending the bill to death. TIA has been on the Hill knocking on the doors of key Senators and we will be ramping up our efforts to engage membership for a true grassroots effort to get this done. If you, or anyone you know, have a working relationship with a Governor or a US Senator, please get in touch with Paul Fiore at 800-876-8372 ext. 102.
Association Health Plan Legislation (Nov. 21, 2005)
Chairman of the Senate Committee on Health, Education, Labor and Pensions, Mike Enzi, has unveiled his plan for reforming the health care system. The intent is to reduce costs and improve access in the health insurance marketplace, principally, though not exclusively, in the small group market. Enzi’s overall approach is to blend a modified version of the current AHP legislation (S. 406, Snowe/Talent) with several additional reform initiatives applicable not just to association plans, but also to the wider marketplace.
The fundamental principles are:
- A meaningful role for associations, but on a level playing field.
- Streamlining of the current hodgepodge of varying state regulation.
- However, also preserve a strong state role in insurance oversight and consumer protection.
- Make lower-cost health plan options available.
- Achieve meaningful reform without a big price tag that could cloud prospects for passage.
TIA is examining this new proposal and has not yet supported it. But health care reform remains TIA’s top legislative concern and this compromise bill will get the issue on the table for discussion in the Senate, a positive step forward.
Association Health Plans (AHP) - (Aug. 18, 2005) The House of Representatives passed the Association Health Plan legislation on Tuesday, July 26. This was no surprise as the bill has passed the House eight previous times. The margin of victory was the largest to date, however, 263-165 with every Republican and 36 Democrats voting in favor of the bill. TIA is hoping for a Senate vote this fall but things seem to have stalled with the Chairman of the Health, Education, Labor and Pension Committee (Mike Enzi - R-WY) wanting a compromise on the bill. What that compromise is to be is still unclear.
Association Health Plans (AHPs)
In April 2005, both the Senate Small Business and Senate Health, Education, Labor and Pensions Committees held hearings on the nation's health care crisis and possible solutions. TIA submitted the following testimony on behalf of our members. Included in the testimony is a personal story from TIA member Carmen Lesieur of Nashua, NH.
click here to read testimony
Association Health Plan Update
On May 13, the U.S. House of Representatives passed legislation to allow Association Health Plans for the seventh time…and the second time this Congress. The new bill, H.R. 4281, the Small Business Health Fairness Act of 2004, passed 252-162 with 37 Democratic votes. House Leadership asked for a new version of the bill knowing it would pass and that it will help put pressure on the Senate. TIA sent letters to the Hill in full support of the new bill and vote.
In the Senate, the AHP legislation finally got a Democratic cosponsor, Senator Robert Byrd of West Virginia. More Democrats should follow. This is a big step for the AHP issue in the Senate. Also, the Senate Task Force on the Uninsured is set to release a package aimed at improving the plight of the uninsured. The Senate package will contain the AHP language. However, the task force is being careful in their talking points that this package is being “brought up for consideration,” not that they are endorsing AHPs, or any other provision of the package. As we go to print, details are being held tightly by Committee staff for fear of leaks. Even top-level staff haven’t seen the details of this package so at this time it’s difficult to say exactly how AHPs and other issues will be addressed.
The good news is that all of this activity is sure to bring much needed attention to the Senate and hopefully force a vote. The White House fully supports AHPs and is pushing the passage of legislation this year. TIA remains committed to the AHP issue.
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TIA
ACTION ALERT!
Congress
is focusing much-deserved attention on Association Health
Plan legislation known as The Small Business Health Fairness
Act of 2003. The time is now to get involved!
Your
letters can make the difference in this debate.
For a sample letter, please click here.
If
you need help determining your legislators in Washington,
DC, you can call Becky
at 703-736-8082.
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BENEFITS
OF ASSOCIATION HEALTH PLANS
•
AHPs will provide small businesses the opportunity to band together
through bona fide trade and professional associations to purchase
affordable health benefits. By joining together, small employers
will enjoy greater bargaining power, economies of scale, and administrative
efficiencies. In this way, AHPs will level the playing field and
give participating small employers the same advantages as Fortune
500 companies and unions.
• Small businesses have little buying power and few affordable
options – five or fewer insurers control at least three quarters
of small group market in most states (GAO, 2002). This lack of
competition is contributing to double-digit rate increases for
many small businesses and a resulting rise in the number of small
business employees who are uninsured.
• AHPs will provide more choice in the health insurance market
place. In addition to self-funded plans, which will be required
to comply with stringent solvency and stop-loss requirements,
legislation currently under consideration will allow AHPs to offer
fully-insured plan options under a uniform set of rules across
state lines. As a result, AHP legislation will actually expand
opportunities for insurance companies to serve small businesses.
• Uniform federal regulation of AHPs will help small businesses
lower their administrative costs because, by operating under federal
law, AHPs can avoid the costs of complying with 50 different sets
of state benefit mandates. In addition, AHPs that are operating
on a national level will be able to receive more favorable treatment
from insurers.
• AHPs will make health insurance more affordable for small
business through reduced premiums. The Congressional Budget Office
(CBO) has estimated that small businesses obtaining insurance
through AHPs will experience premium reductions of 13% on average
and up to 25% (CBO, January 2000). That’s about $450 to $1250
saved per covered employee. Some companies might save enough on
their insurance premiums to offset the increase in wages for their
lowest-paid employees.
• The smallest firms stand to save the most from AHPs because
their administrative costs, which account for a significant percentage
of their expenses, will decrease. A January 2003 Small Business
Administration (SBA) actuarial report shows that administrative
expenses for insurers of small health plans make up 33-37 percent
of claims. This compares with about 5-11 percent of claims for
large companies’ self-insured plans.
• Because insurance will be more affordable, more small firms
will provide it to their employees and families. According to
the CONSAD Research Corporation, as many as 8.5 million previously
uninsured workers would receive coverage if this legislation is
enacted into law.
