|
 Printer-Friendly Version
OPA News Release: [03/06/2003]
Contact Name: Kathleen
Harrington
Phone Number: (202) 693-4676
Secretary Elaine L. Chao
Joins Senate Lawmakers on Introduction of Association Health Plan Legislation
Labor Department Prepared to Administer New Health Reform Protections
WASHINGTON—Secretary of Labor Elaine L. Chao today joined
Senators Olympia Snowe (R-ME), Kit Bond (R-MO) and Jim Talent (R-MO) at a press
conference to introduce legislation on Association Health Plans (AHPs). Chao
told Senate lawmakers that the department is prepared to administer the health
reforms that will provide millions of small business owners and their employees
with access to quality, affordable health care.
“Many small employers want to provide health coverage, but face
major hurdles in caring for their workers. The Labor Department is engaged in
aggressive efforts to combat health insurance fraud as well as providing a
great deal of information to employers to help them manage their health
plans,” said Chao.
“The new federal certification standards and uniform oversight
would add important protections for workers and enhance the department’s
ability to combat health fraud. These protections would ensure small employers
are not at the mercy of ‘fly-by-night’ operations. I am confident of
our ability to successfully administer these new protections.”
Chao noted that AHPs present an ideal opportunity to expand health
insurance coverage for working Americans. By banding together, AHPs would give
small employers many of the economic and legal advantages currently enjoyed
only by large employers and union plans. AHPs would achieve savings for small
businesses through greater bargaining power, economies of scale, and
administrative efficiencies. According to the non-partisan Congressional Budget
Office, AHPs will lower health insurance premiums by 25 percent and provide
health insurance to as many as two million Americans who are currently
uninsured.
The AHP protections would be administered by the U.S. Department of
Labor, just as the department exclusively regulates self-insured health plans
providing benefits to approximately 70 million American workers, retirees and
their families under current law. In addition, the department shares regulatory
responsibilities with the states for the approximately 60 million participants
in fully insured health plans.
Chao voiced support for the legislation and a commitment to work with
Congress to help enact and administer the legislation.
# # #
_________________________________________________________________
| 
