07/18/2007
NFIB members provide small-business perspective in important discussion
CONTACT: Stephanie Cathcart, 202-431-3239
WASHINGTON, D.C.--Two members of the National Federation of Independent Business joined President George W. Bush today for a roundtable discussion focusing on affordable health insurance initiatives. Phyllis Burlage and Mike Kostinsky, both of Maryland, shared the small-business perspective on the struggle to find and provide affordable health insurance options in their workplace. Also joining them were employees of their small businesses: Lori Emmert, office manager with Burlage Associates and Debra Couch, manager at Sorrento of Arbutus.
Small-business owner Phyllis Burlage is committed to providing health insurance (paying 100 percent) for her employees. However, with premium increases averaging 15 percent or more each year and fewer options in the small-group market, it has become more than just a thorn in her side.
"I've got great employees and they deserve the best compensation package I can give them," said Burlage, owner and president, Burlage Associates PA. "But these increases are simply unsustainable in the long run. My premiums went from $1,600 per month last year, which was already a huge strain on my business, to $2,000. Something has got to give."
Mike Kostinsky finally succumbed to unsustainable premium increases in the late 1990s. With 25 employees, Kostinsky was forced to make the decision to stop providing coverage in order to continue to re-invest in his small business and hire additional employees. Instead, Kostinsky pays for his employees' health-care expenses out-of-pocket.
"My employees are like family; we take care of each other. If someone who works for me needs a prescription or has to see the doctor, I usually end up paying for it myself," said Kostinsky, owner of Sorrento of Arbutus. "I don't want sick employees, but I also can't afford to pay the thousands of dollars in premium increases each year. There just aren't enough affordable options for small employers like me."
Many small firms cannot afford to provide health insurance due to lack of provider competition and ever-increasing premiums. According to the Commonwealth Fund, the nation's smallest firms pay, on average, 18 percent more in health-insurance premiums for the same benefits than do those in the largest firms.
In a recently released survey of NFIB members, small-business owners overwhelmingly re-iterated the need for Congress to address ever-rising health-insurance costs. Respondents to the survey indicated they favor equalizing the tax structure for those obtaining health insurance, regardless of its source. Exploring options that can provide affordable alternatives for both employers and their employees, such as tax incentives and pooling, can be significant first steps to addressing the dire health care situation.
Biographical Info on Roundtable Participants
Phyllis Burlage is the owner and president of Burlage Associates PA, an accounting firm based in Millerville, Md. She provides health benefits to her four employees, covering 100 percent of their coverage. Burlage started her company more than 20 years ago and has been an NFIB member since 1988. In 2006, Phyllis was named "Maryland Small Business Champion" by NFIB for her commitment to small-business advocacy.
Mike Kostinsky runs a second-generation family restaurant and catering business, Sorrento of Arbutus. He used to provide health insurance for his employees but had to drop coverage due to premium increases. He currently covers many of employees incurred health-care costs out-of-pocket. Kostinsky has been an NFIB member for nearly 15 years and hopes to pass along the family business to his son.
Lori Emmert is the office manager at Burlage Associates PA. She has been with the firm for more than 10 years, and receives fully-subsidized family health-care coverage from her employer.
Debra Couch is the manager at Sorrento of Arbutus. She has worked there for more than 20 years.
