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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. Bush’s 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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