June 10, 2008
The Honorable Ron Kind
U.S. House of Representatives
1406 Longworth House Office Building
Washington, D.C., 20515
The Honorable Phil English
U.S. House of Representatives
2332 Rayburn House Office Building
Washington, D.C. 20515
The Honorable John Barrow U.S. House of Representatives
213 Cannon House Office Building
Washington, D.C. 20515
The Honorable C. W. Bill Young
U.S. House of Representatives
2407 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressmen Kind, English, Barrow and Young:
On behalf of the National Federation of Independent Business, the nation’s leading small business association, we commend you for introducing the Small Business Health Options Program (SHOP) Act. This legislation recognizes that the number one problem facing small business and the self-employed is the cost of health insurance, and seeks to give them improved access to affordable healthcare through insurance market reform and tax incentives.
Of the estimated 47 million Americans without health insurance, more than 28 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. As a result, they pay an average of 18 percent more for the same healthcare benefits.
The SHOP Act represents a different approach to small business healthcare reform. Yet, the goals remain the same – to lower costs for small business and provide a simpler way to shop for, and expand the choice of, health insurance policies. It allows small employers to increase their purchasing power by joining a state purchasing pool should 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.
This legislation represents a strong bipartisan effort to make health insurance affordable for small business. We support SHOP’s introduction in the hope that it can be a starting point for serious discussions on significant small business reform legislation designed to provide overdue and much needed relief to our nation’s job creators.
Thank you for your support for small business.
Sincerely,
Todd Stottlemyer
President and CEO
National Federation of Independent Business
CC: Congressmen Russ Carnahan, Jo Ann Emerson, Thomas Allen, Jim Gerlach, Jason Altmire, Christopher Shays, Joseph Courtney, Jim Ramstad
