|
Committee Reviews State of
Health Care for Small Business
WASHINGTON – One of the biggest challenges currently facing
entrepreneurs is a lack of health care coverage. Small business
leaders and representatives from the health insurance industry
discussed the reasons that small firms have difficulty providing
coverage and potential solutions to this issue. This hearing marks
the beginning of the committee’s work to make health care
more affordable and available to this nation’s 26 million
small businesses.
Entrepreneurs have been among the hardest hit in the health care
crisis. Of the 46 million Americans without health insurance,
more than half live in a household headed by a small business
owner or employee. Nearly all businesses with more than 200 employees
offer coverage, but only 48 percent of the smallest firms do.
While small businesses represent the majority of employers in
this nation, it is clear they are having extreme difficulty in
providing their employees with health care coverage.
“With so many entrepreneurs and their families struggling
to access care today, reform must begin with the small business
market if solutions to this country’s health care crisis
are to be found,” Chairwoman Nydia M. Velázquez said.
“Reform is vitally important to small businesses that need
affordable health care to attract a talented workforce, help their
employees stay healthy, and be competitive.”
The current structure of the health care market clearly reduces
the ability of small businesses to purchases coverage. Due to
limited competition and few options when it comes to price and
coverage, many small employers do not offer coverage. For those
who can afford it, they also face the additional burden of limited
purchasing power and higher administrative costs. Small firms
with very few employees face the greatest difficulty in obtaining
coverage. Insurers often charge higher rates for these smaller
firms because of the potential risk for high-cost claims that
could reduce or eliminate any profits for the insurance company.
“The high cost of health care is a serious obstacle for
small businesses that are trying to compete in the global marketplace,”
Chairwoman Velázquez said. “We know small firms pay
more per employee to provide health insurance than large firms
and that many of our nation’s main job creators simply cannot
afford it. Meaningful reform that addresses these concerns is
a necessity, and this committee will be working to find a solution
to this ongoing crisis.”
Representatives of small businesses and the insurance industry
described a number of possible solutions to the unique problems
small businesses face in the insurance market. Potential approaches
include changing the tax treatment of health insurance, exploring
reinsurance options, and expanding pooling options available to
small businesses. The committee also heard testimony on several
state health insurance reform initiatives and how these changes
are affecting entrepreneurs’ overhead costs and their ability
to offer coverage.
“It is clear from today’s testimony that changes are
needed to make offering health care coverage an affordable option
for small businesses,” said Chairwoman Velázquez.
“This is the direction the economy is headed, and reforms
need to be targeted to ensure a healthy workforce now and in the
future.”
To
receive our business newsletter and/or send your comments:
© Contacto Magazine -
Privacy Notice -
Home - Send
a Message
|
|