Thursday, July 16, 2009

Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District offered an amendment to H.R. 3200, the Affordable Health Choices Act, in the Education and Labor Committee to help small businesses.  The amendment passed by a vote of 29 to 19.  Below is Titus’ prepared statement on the amendment.

“Thank you Mr. Chairman.  The America’s Affordable Health Choices Act allows employers and employees to either keep the insurance that they have or enter the Health Insurance Exchange.  The advantage of the Exchange for small businesses is that they will be able to provide employees an option for health insurance, but at a rate that is much more affordable.  Small businesses are at a distinct market disadvantage when it comes to shopping for affordable plans to provide for their employees and one chronically ill or seriously injured employee can send costs sky-rocketing.

“As the bill is currently written, in year one, businesses with 10 or fewer employees are eligible to enter the Exchange and in year two, businesses with 20 or fewer employees can enter.  In the following years, the size of business that can enter is up to the discretion of the Commissioner of the Health Insurance Exchange.  The Commissioner is given the freedom to increase the size of the business only very incrementally or worse, not at all.

“The smallest businesses face the biggest challenges in finding affordable health care and need the option of the Exchange more urgently.  From 2000 to 2005, the median cost of health insurance relative to payroll increased 43.5 percent for businesses with 25 or fewer employees.  Since 1999, health insurance premiums for small firms have increased by 113 percent.

“Very simply, my amendment will increase the size of small businesses that can choose to enter the Exchange in the first two years and will set minimum standards that the Commissioner must follow in year three.  In year one, the size of businesses eligible for the Exchange will increase from 10 to 15 employees.  In year two, the size of businesses eligible for the Exchange will increase from 20 to 25 employees.  The amendment will further require that in year three, the Commissioner must allow additional small businesses to enter the Exchange and will set the minimum size for an eligible small business to one with 50 employees, while leaving the Commissioner with the authority to allow larger employers into the exchange, as well.

“I believe this is an amendment that crosses party lines, and one that a variety of small businesses and organizations can stand behind.

“Many of you may have received the same letter that I did from NFIB outlining both their reservations about the bill and some of their suggestions for improvements.  While I don’t agree with everything in the letter, I would direct your attention to the second page of this letter.  NFIB states the following:

‘Although NFIB believes that an exchange approach can provide a streamlined and simplified way to gain access to affordable coverage, H.R. 3200 fails to provide guaranteed access to the exchange for employers with 21 or more employees.  Providing increased access and more choices for some, but not for all small businesses is not reform that small businesses will support.  NFIB supports amendments to allow the entire fully insured small-group market (2-50 employees in most states) entry into the exchange within three years from the date of enactment.’

“I have also heard from the Small Business Majority that they support this amendment and it is consistent with the improvements they believe are needed for the Health Insurance Exchange.

“In addition, it is what my constituents need.  A small business owner in my district wrote to me to say that he supports the bill and agrees with my amendment.  As an employer of 13 people he has always tried to provide health care for his employees, and this amendment will go a long way toward making it easier.”

Click here to read the amendment.

#  #  #

Tags: economy, health care