May 15, 2008
The Honorable John Barrow
213 Cannon House Office Building
Washington, D.C. 20515
Dear Congressman Barrow:
On behalf of the nation's leading small business association, we commend you for introducing H. R. 5918, the Small Business Health Options Program (SHOP). This legislation recognizes that the number one problem facing small business and the self-employed is the cost of health insurance, and seeks through insurance market reform and tax incentives to give them improved access to affordable healthcare.
Of the estimated 47 million Americans without health insurance, more than 27 million are small business owners, their employees and dependents. They shoulder the disproportionate burden of a broken healthcare system and have seen their healthcare premiums increase 129 percent over the last 8 years. Any healthcare reform, however big or small, must recognize the unique problems facing small business. Under current law, small businesses don't enjoy the same tax breaks, coverage or pooling options as large businesses and corporations; on average they pay 18 percent more for the same healthcare benefits.
SHOP represents a different approach but one that seeks to achieve the same goals to lower costs for small business and a simpler way to shop for, and expand the choice of, health insurance policies. It allows small employers to expand their purchasing power by joining a state purchasing pool if states decide to offer them, allows for a nationwide pool by 2011, and incentivizes small businesses to join them with a targeted tax credit. The bill also seeks to stabilize yearly premium hikes through insurance rating reform. It reaches these goals through a framework that continues strong consumer protections and allows an appropriate transition period to a national pooling structure.
We support SHOP's introduction and hope that it will lead to a broader discussion on small business access to affordable healthcare.
Thank you for your support for small business.
Sincerely,
Dan Danner
Executive Vice President
Public Policy and Political
