Pennsylvania Small Business Owner Will Share with U.S. Senate His Struggles with Health Insurance

Date: June 28, 2016

National Federation of Independent Business member will testify about difficulties affording quality care for employees

For Immediate Release
Andrew Wimer, 202-314-2073 or 703-298-5938 (cell)
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Washington, D.C. (June 28, 2016)National Federation of Independent Business (NFIB) member Warren Hudak, owner of the Harrisburg, Pa. area small business Hudak and Company, will testify today in front of the Senate Health, Education, Labor, and Pensions (HELP) Committee. Hudak will share his story about the difficulty he has faced purchasing health insurance since passage of the Affordable Care Act (ACA).

Our business is a typical small business in many ways,” Hudak will testify. “Hudak and Company is a growing firm, but rising health care expenses consume an increasingly significant share of our revenue. It is difficult to keep up with the constant implementation changes, which can be disruptive to our business.  These changes are sometimes meant to help, but occur too late to provide substantial relief.  I feel like small businesses have been placed in an impossible situation as costs increase and competition and flexibility decrease.”

Hudak and Company had three different group health plans cancelled before deciding to begin offering a health reimbursement arrangement (HRA) for their employees. However, last year the IRS began enforcing substantial fines for employers using HRAs to help employees pay for health insurance.

Hudak will ask the Senate to take up legislation passed by the House last week, the Small Business Health Care Relief Act of 2016. This bill would allow businesses like Hudak and Company to once again provide an HRA for their employees.

“Certainly, lawmakers who drafted the ACA did not intend to punish small businesses for helping their employees with health care costs,” Hudak will testify. “Our business is proof that this arrangement worked.”

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