Health Insurance for Small Business Workers a Priority for HELP Chairman Enzi

Health Insurance for Small Business Workers a Priority for HELP Chairman Enzi

Wyo. ranking low, Jackson man shares hardships at DC hearing

U.S. Senator Mike Enzi, R-Wyo., Chairman of the Senate Health, Education, Labor and Pensions (HELP) Committee is committed to achieving serious and meaningful transformation of the health insurance marketplace, especially for small businesses, and pledged at a hearing today that he will not accept a "do nothing approach" to help small businesses combat growth in health insurance costs and dwindling access to health coverage.

"We need to develop an effective yet reasonable strategy to increase the ability of small and low-wage businesses to offer health insurance," Enzi said Thursday. "As we meet today, we have had almost five full years of devastating double-digit growth in insurance premiums, which amounts to five times the rate of inflation. Since 2000, premiums for family coverage have grown nearly 60 percent, compared to inflation of 9.7 percent over the same period.

"This unchecked growth in cost is bad for businesses that need to attract high quality employees, and bad for families who need jobs to pay their bills," Enzi said. "As a former small business owner, I have seen this problem firsthand. My own state of Wyoming recently ranked 47th in the percentage of businesses that offer health insurance to their employees. Clearly small business needs relief - quickly."

Jackson businessman, Mitchell Blake of Blake Ward Architects traveled to Washington to testify before the committee at the invitation of Enzi. (see right)

"Offering health insurance is one way that we're able to help relieve stress and create a positive work environment for our employees. But I have to be honest that it's not getting any easier. Our story is one of increasing deductibles and higher premiums," Blake said. "We want the best for our employees because it's the right thing to do and creates a positive, healthy work environment. But increasing health costs call into question how long we'll be able to offer this benefit without eliminating other benefits and still stay in business."

Today's hearing marked the HELP Committee's first effort during the 109th Congress to address support in the small business community for new health insurance options, such as legislation allowing national Association Health Plans (AHPs). Acknowledging support for AHPs, Enzi said he will work sincerely with both opponents and proponents of AHPs to find a hybrid legislative approach that draws from the very best aspects of the AHP proposal while also taking a careful look at other approaches, including streamlining of often hodgepodge state insurance regulations and easing costly benefit mandates.

"Advocates for AHPs make a strong and persuasive case that small businesses should be able to pool their purchasing power, and thereby reap some of the advantages currently enjoyed by large employers. I find much merit in these ideas," Enzi said.

Nevertheless, the HELP Committee Chairman is mindful of serious concerns that national AHPs could result in so-called "cherry picking" of healthy individuals from health insurance groups and fracture an already fragmented insurance market.

"The one option I will not accept is doing nothing," Enzi added. "For those who oppose AHPs, now is the time to come forward with constructive alternatives. And for AHP supporters, now is the time to think seriously about ways to bridge the differences that remain on this important issue. Whatever we do, we need to ensure that the insurance market is affordable and stable and that consumers are protected."

http://enzi.senate.gov/helphearing.htm