S. 2818 - Small Business Health Plans Act of 2008

by Brad Peck

The Chamber's Bruce Josten sent a letter today to Senator Enzi and Senator Nelson to thank them for introducing S. 2818, the "Small Business Health Plans Act of 2008."  From the letter:

This legislation will lower costs and increase health insurance coverage for Americans working for small businesses. The Chamber has long supported the concept of pooling across state lines to drive down the cost of health insurance for small businesses and the self-employed.

While the number of uninsured continues to rise, it is important to note that a large number of those are small business owners, their families, and their employees. S. 2818 would give small businesses the ability to pool together and bargain for better rates; increase administrative efficiencies, and create a streamlined regulatory structure so that a small business health plan (SBHP) can offer a uniform product regardless of where employees live, work, or receive medical care. Large corporations and unions already enjoy these benefits; this bill would level the playing field for small businesses.

Important elements of SBHPs include:

Lower health insurance costs
SBHPs would allow small businesses to pool together for greater purchasing power, in turn reducing administrative burdens, which may reduce plan costs by 15-30 percent;

Consistency
SBHPs would allow for some relief from the inconsistent patchwork of state rules and mandates, with a uniform set of rates and benefits for employees regardless of where they live, work, or receive medical care;

Level the playing field
Large corporations and labor unions have tax, pooling, and administrative advantages that make providing health care more affordable and feasible for them. SBHPs would allow small businesses the same benefits;

Create more health insurance options
SBHPs would give small businesses some choice, increasing competition in health care markets; and

Reduce the number of uninsured
SBHPs have the potential to significantly increase the number of insured Americans; by some estimates, 8 million or more uninsured individuals could gain insurance if SBHPs become law.

Importantly, S. 2818 also includes compromise language originally proposed by Senator Snowe during previous Senate consideration of similar legislation. This is a bipartisan bill as evidenced by its moderate approach to preemption of state benefit mandates. The Chamber also acknowledges that further changes to this bill will need to be made to ensure its enactment into law.

Read the full letter.

Washington insiders will be discussing this, and other legislation, at America's Small Business Summit 2008, which starts tomorrow.