Background:
Health care costs continue to rise, putting more and more pressure on the economic viability of many foundries. In recent years, the cost of health care has doubled for small businesses, and many employers are finding it necessary to share more of this economic burden with their workers. Small business workers pay nearly 20% more for their health insurance benefits compared to those employed by large companies and do not have as many health care coverage options.

Issue:
Small Business Health Plan (SBHP) legislation would allow small businesses to band together across state lines, though membership in a trade association like AFS to purchase health insurance. Working collectively, small businesses would be able to obtain the same affordability and choice in the health care marketplace that larger companies and labor unions enjoy, as well as significantly reduce the administrative burdens and costs they must now endure.

Status:
The U.S. House of Representatives passed the Small Business Health Fairness Act of 2005 (H.R. 525) on July 26, 2005. The Senate companion bill, S. 406, is currently stalled in the Senate Health, Education, Labor, and Pensions (HELP) Committee.

In November of 2005, Senate HELP Committee Chairman, Michael Enzi (R-WY), introduced a compromise SBHP bill since S. 406 was stalled in committee.  The Health Insurance Marketplace Modernization and Affordability Act of 2006 (S. 1955) would:

• Allow trade associations like AFS to use their collective bargaining power to negotiate more affordable health insurance plans for its members.
• Bypass multiple state benefit mandates to make it easier for insurers to provide plans to small businesses in different states.
• Allow trade associations to offer tailored health insurance plans to their membership.
  
• Save small business an approximate 10-15% on their premiums and reduce the number of uninsured by nearly one million people.

On March 15, 2006, the HELP committee approved S. 1955 by a party line vote. This is the first time a Senate committee has approved SBHP legislation. A full Senate vote is expected in late April during the week of the AFS Government Affairs Conference.

Action Requested:
Please send a letter to your Senator encouraging him or her to support S. 1955 and make health care more affordable for small businesses. Click here for text you can use and personalize as you draft your letter. Place on your company's letterhead and e-mail a copy to Alicia Oman at the AFS Washington Office ( This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ) who will send your letter to the appropriate congressional staffer.

For more information, contact Alicia Oman ( This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ) at the AFS Washington Office.