May 8, 2006
I am pleased to be able to join Ron Pollack, Executive Director of Families USA, today to discuss the release of this important report. I wish we were here to talk about real solutions to the crisis facing American health care, and especially small businesses.

The cost of employer-sponsored health care coverage increased by nine percent in 2005, after growing by eleven percent in 2004 and fourteen percent in 2003. The average annual premium for a family of four is now nearly $11,000. Because of their inability to pool risk, small businesses and their employees are even more vulnerable in the face of skyrocketing health care costs. Many simply cannot afford to provide health insurance.

But instead of addressing this problem, we are here to discuss a Republican bill (S. 1955, the Health Insurance Marketplace Modernization and Affordability Act) that is a perfect example of the cure being worse than the disease. Make no mistake about it – this legislation will do nothing to help small businesses. Instead, it will harm those Americans who least can afford it: older and sicker workers, and those with special health care needs.

Even small businesses realize that this legislation will do more harm than good. I recently received a letter from the Connecticut Business and Industry Association (CBIA), which represents 5,000 small businesses in my home state. They write that this legislation “would destabilize the small business insurance marketplace, erode carefully crafted consumer protections and raise premium rates for small businesses with older workforces and those that employ people with chronic illnesses or disabilities.”

In the next few days, Democrats intend to offer an alternative that offers real relief to small businesses, and I hope that those who support S. 1955 will take a considered look at our proposal. Our alternative will allow small businesses to join together in a program similar to the one enjoyed by Members of Congress and their staffs. This alternative offers real choice to consumers, and will protect critical benefits while ensuring that insurance is affordable for older and sicker workers.
Unfortunately, the same cannot be said for the Republican proposal. While 45 million Americans are uninsured, and the cost of care continues to rise at a staggering rate, President Bush and Republicans in Congress are pushing legislation that, as today’s report shows, will eliminate critical health benefits for 85 million Americans – benefits such as diabetes care, cancer screening, care for newborns and children, and mental health.

Senate bill 1955 will harm the most vulnerable. It will take away access to comprehensive plans for those with health care needs – cancer patients, diabetics, pregnant women, people with cardiovascular disease, families with children, and I could go on and on. These are the people who will pay for this legislation, and I think it’s unconscionable.
This report also shows that citizens in every state will be affected. Citizens in every state stand to lose patient protections adopted by their states, often after lengthy debate and careful consideration. In one fell swoop, this bill will undo the work of each state to protect their citizens.

In my home state of Connecticut alone, more than one million people will lose access to cancer screening, well-child care, diabetes supplies, alcoholism treatment, and treatment for Lyme disease (just to name a few of the 30 benefits that will be lost).
In addition to seeing their benefits disappear, millions of Americans will see their health insurance premiums skyrocket. This bill preempts state laws that currently protect older workers, those with serious illnesses such as diabetes, cancer, and heart disease, and even expectant mothers, from seeing their premiums increase dramatically.

This bill will allow insurance companies to charge people more based on the fact that they are sick, or pregnant, or simply older. I have many insurance companies in my state, and they do a wonderful job. But they are also businesses, and like every business, they want to make a profit.

It doesn’t take an expert to predict what is going to happen. Insurance companies are going to offer plans with minimal or no benefits, hoping to attract young and healthy people. Older, sicker people are going to be left without a plan that meets their needs.
Every analysis of this bill reaches this same conclusion. The Congressional Budget Office (CBO) found that the bill “would tend to reduce health insurance premiums for small firms with workers who have relatively low expected costs for health care and increase premiums for firms with workers who have relatively high expected costs.”

In other words, instead of attacking the real problem, the rising cost of health care, this legislation would simply shift cost to small businesses with older and sicker workers. In fact, another study commissioned by supporters of this legislation concluded that it “is not going to address the underlying causes of high health insurance premiums, which are high health care costs.”

And even firms with healthy workers would be balanced on a precipice – one illness could cause their insurance premiums to go through the roof.
Governors, state Attorneys General, and state Insurance Commissioners have reached the same conclusion, as have an enormous number of groups representing health care providers and patients.
We can do better. Small businesses need our help to afford health insurance for their employees – they need real solutions.