NFIB

Small-Biz Counts on US Rep. John Thune, Fights for Affordable Health-Care Reform
10/04/2002

SOUTH DAKOTA, October 4, 2002 -- Out of control health-care costs are forcing many small businesses across the nation to abandon coverage for their families and employees, but there is a solution and a leader who will fight for reform, says the nation's largest small-business advocacy group, NFIB.

"U.S. Rep. John Thune has worked tirelessly on behalf of small businesses in South Dakota and across the nation to support solutions for escalating health-care costs, including the creation of Association Health Plans or AHPs," said Eric Berger, NFIB regional political director. "Thune has twice voted for creating AHPs, medical savings accounts and for small business tax breaks that would help offset the high costs of coverage.

"Small businesses need a plan that brings down the cost of health insurance for small-business owners, so that they can afford to provide the coverage that will make them competitive in the labor market," Berger said.

AHPs would allow small businesses the opportunity to band together across state lines to purchase health care through a trade or professional organization, giving small businesses and their employees the same economies of scale, purchasing clout and administrative cost savings as big business and union plans, Berger said. He noted that recent data from the U.S. Commerce Department Census Bureau showed the number of uninsured rose by 1.4 million, to 41.2 million, between 2000 and 2001.

"Small-business owners simply cannot afford the rising cost of health-care premiums," said Berger. "Money spent on escalating costs could be better spent on expanding services and products and hiring qualified workers. In contrast, U.S. Senator Tim Johnson has voted on legislative initiatives to increase health-care mandates. It is reported that mandates benefits account for up to 15 percent of health-care costs. He has also not stood up for the creation of Association Health Plans, small businesses' number one priority.

"U.S. Rep. John Thune understands that because small businesses are desperate to keep pace with bigger corporations, something has to be done immediately to help keep Main Street employees on Main Street," Berger continued.

CONTACT: Eric Berger 206.794.9022
or Tanya Neuman 202.554.9000