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EBSA News Release: [03/25/2003]
Contact Name:
Kathleen Harrington
Phone Number: (202) 693-4676
Secretary of Labor Elaine L. Chao Meets With Minnesota
Small Business Owners
Seeks Input To Improve Access To Affordable,
Quality Health Care
WASHINGTON—U.S. Secretary of Labor Elaine Chao today
participated in a roundtable discussion with small business owners in
Minneapolis, Minn., to discuss the challenges faced by small employers in
obtaining affordable, quality health care and solutions for making health
benefits more accessible for millions of working Americans and their
families.
“The President has proposed comprehensive health reforms to provide
families access to affordable, quality health insurance,” said Chao.
“The majority of small business owners want to take care of the critical
health needs of your employees.
“New solutions are needed to overcome the economic and market
barriers small businesses face in obtaining health insurance. Association
Health Plans will make health coverage an affordable reality for small
employers and their workers and reduce the ranks of the uninsured.”
According to a March 2003 survey released by the Minnesota Department of
Health, only 36% of all small businesses with less than 10 employees offer
health benefits, compared to 92 percent for firms with more than 200
employees.
Association Health Plans (AHPs) will provide millions of small business
owners and their employees access to quality, affordable health care. AHPs
would achieve savings for small businesses through greater bargaining power,
economies of scale, and administrative efficiencies. Eighty-five percent of the
41 million uninsured in America are members of working families. And, 60
percent of those are employed by a small business.
The U.S. Department of Labor’s Employee Benefits Security
Administration would administer and enforce new federal standards. The
legislation would provide important protections for workers and enhance the
department’s ability to combat health fraud. The department currently
administers the federal employee benefits law protecting approximately 2.5
million private-sector health plans and 131 million workers, retirees and their
families.
Chao told the group that they are the backbone of our economy and the
source of creative innovations. She challenged the group to work with the
department to find innovative solutions to meet the health needs of small
employers across the country.
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