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EBSA News Release: [06/16/2003] Contact Name: Lisa
Kruska Phone Number: (202) 693-4676
Secretary of Labor Elaine L. Chao Meets with Nashville
Community to Discuss Health Insurance Options
AHPs Can Increase Access to Affordable Health
Coverage for Workers in Tennessee
NASHVILLE, Tenn.U.S. Secretary of Labor Elaine L. Chao
today participated in a roundtable with members of the Nashville community
including small business employers in Tennessee. The Secretary heard about the
difficulties small business owners face in obtaining access to affordable,
quality health insurance for their employees and families. U.S. Rep. Lincoln
Davis (D-Tenn.) and U.S. Rep. Marsha Blackburn (R-Tenn.), sponsors of
Association Health Plans (AHPs) legislation, joined the Secretary at the
roundtable.
Two out of every three new jobs in our economy are created by
small business employers, many of whom are also employees in their own
business, said Chao. Small business employers have expressed their deep
concern about health insurance costs that escalate every year as they struggle
to provide this benefit for their employees.
Tennessee has an impressive health coverage rate of 97 percent for
employers with 50 or more workers. But, for small businesses with fewer than 50
employees in the state, only 41 percent can afford to offer health coverage to
their employees. Small businesses in Tennessee face numerous barriers in
offering health coverage to their workers because they lack options for
obtaining insurance coverage and face hefty double-digit increases in
healthcare costs every year like so many other small business employers across
this country.
Association Health Plans can provide more options and reduce the
cost of health coverage for small employers and their employees. The great
majority of the uninsured are working Americans who work for small
businesses. The President and I are committed to addressing this critical issue
of access to quality, affordable healthcare for the uninsured, said
Chao.
According to a report by the General Accounting Office, 60 percent of
the small business insurance market in Tennessee is concentrated with only one
insurer.
President George W. Bushs health reform proposals would allow for
the creation of AHPs, which will allow small employers to pool their buying
power and offer lower cost health coverage to employees and their families.
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.
The Small Business Health Fairness Act (H.R. 660) passed the House
Committee on Education and the Workforce with bipartisan support on June 12,
2003.
The roundtable was hosted by the Associated Builders and Contractors,
Mid-Tennessee Chapter; the National Federation of Independent Business; the
National Restaurant Association; the Tennessee Restaurant Association; the
Nashville Area Chamber of Commerce; the U.S. Chamber of Commerce; and Women
Impacting Public Policy.
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