March 7, 2006
Dear Senator:
On behalf of the 600,000 members of the National Federation of Independent Business (NFIB), I urge you to support Small-Business Health Plan (SBHP) legislation. S. 1955, The Health Insurance Marketplace Modernization and Affordability Act of 2005, would provide small businesses with needed accessible, affordable options in the health-insurance market.
According to a 2005 report from the Kaiser Family Foundation, the cost of health care has moved far beyond the reach of most small businesses. Only 47 percent of the smallest companies – 3 to 9 workers – offer health benefits, as compared to more than 90 percent of firms with 50 workers or more. The percentage of all small businesses – defined as 3 to 199 employees – that offer health-insurance benefits has steadily declined from 68 percent in 2000, to 59 percent in 2004. Without your leadership and action on this issue, these numbers will only get worse, leaving more working Americans without access to affordable health care.
We strongly believe that S.1955 and the creation of Small-Business Health Plans will help reduce the number of uninsured Americans by allowing small businesses the same accessibility, affordability, and choice in the health-care marketplace that big businesses and unions now experience. Banding together across state lines under bona fide trade or professional associations, small-business owners and their employees will benefit from the same economies of scale, purchasing clout, and administrative efficiencies that their big business counterparts currently enjoy. Additionally, S. 1955 aims to increase competition in the small group market by establishing more uniform regulations. We believe this will allow more carriers the opportunity to offer health insurance products to small business owners and their employees.
Health-care costs are the number one concern of our members, and the creation of Small-Business Health Plans would be a significant step in the right direction toward insuring more small-business workers and their families. Action addressing affordable access to health care for the small-business community is crucial for the continued growth of America’s job creators. We hope we can count on your support to help pass S. 1955.
Sincerely,
Dan Danner
Vice President
Federal Public Policy
