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EBSA News Release: [08/20/2003]
Contact Name: Ed
Frank
Phone Number: (202) 693-4676
Labor Secretary Elaine L. Chao Meets with Louisiana
Small-Business Employers to Discuss Access to Health Insurance
“AHPs Will Expand Health Insurance Choices for
More Louisiana Workers”
NEW ORLEANS—U.S. Secretary of Labor Elaine L. Chao today
participated in a health-care roundtable with small-business employers in New
Orleans and called for the creation of Association Health Plans (AHPs) to help
small employers and employees obtain better access to affordable, quality
health insurance.
“Today, I heard from small-business employers who expressed their
deep concern that escalating health insurance costs are putting health care
benefits out of the reach of many of their employees and their families,”
Chao said. “Association Health Plans will provide more choices, increase
access to quality care and reduce the cost of health care coverage for
small-business employers and their employees. The President and I are committed
to closing the health care coverage gap and we urge the Senate to pass
legislation to make affordable health coverage a reality for more
small-business employers and their workers.”
AHPs would allow small businesses to band together nationally, pool
their resources and purchase more affordable health insurance for their
employees. Studies show that AHPs could save small employers and their
employees as much as 25 percent on their health insurance costs and help as
many as eight million uninsured Americans obtain coverage. Under AHPs, barriers
that prohibit small businesses from offering health insurance will be reduced
or eliminated while consumer protections will be enforced and even increased.
Most importantly, AHPs will allow more working Americans and their families to
have the security of affordable, quality health insurance.
Small businesses create two out of every three new jobs in the U.S.
economy, and a majority of the uninsured are working Americans who are employed
by small businesses. In Louisiana, 845,000 citizens, most of whom are from
families working for small businesses, do not have health care coverage. 94
percent of private employers with 50 or more workers offer health care
coverage. However, for small businesses with fewer than 50 employees at the
work site, only 34 percent offer health coverage to their employees. In
addition, 85 percent of the small-employer insurance market in the state is
concentrated with only two insurers, and AHPs would promote competition and
will help control costs. Employers in the state also face barriers that limit
their options for obtaining insurance coverage and face hefty increases in
health-care costs each year.
The AHP legislation passed the U.S. House of Representatives on June 19,
2003, with bipartisan support of Louisiana lawmakers. AHP legislation is
pending in the United State Senate.
Today’s roundtable was hosted by the Associated Builders and
Contractors—New Orleans/Bayou, New Orleans Chamber of Commerce, Louisiana
Restaurant Association, National Federation of Independent Business, National
Restaurant Association, U.S. Chamber of Commerce and Women Impacting Public
Policy.
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