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OPA News Release: [08/06/2002] Contact Name: Sue
Hensley Phone Number: (202) 693-4676
Secretary Elaine L. Chao Announces Assistance to Help
Small Businesses Avoid Health Benefit Scams
Advocates Stronger Protections and Greater Access to
Health Benefits
WASHINGTON, D.C. -- Secretary of Labor Elaine L. Chao today
announced a program to help small businesses protect their employees when
purchasing health insurance. The Secretary also reaffirmed the
Administrations support for Association Health Plan legislation to
improve access to affordable quality health care as well as aggressive
enforcement of existing health benefits laws.
The Administration recognizes that employers want to provide
access to affordable quality health benefits for workers and their
families, said Chao. Unfortunately, operators of insurance scams
continue to prey on small businesses who are lured by offers of cheap
coverage.
In an effort to educate small businesses, Chao wrote to over 80
business leaders and associations requesting them to distribute and follow
simple tips entitled How to Protect Your Employees
When Purchasing Health Insurance. The tips encourage small businesses
to exercise caution by doing such things as comparing coverage and costs,
checking with state insurance commissioners, and asking for references of other
employers enrolled with a health provider.
Until small businesses have meaningful access to affordable
quality health care coverage, they will continue to be vulnerable to health
insurance scams, said Chao. That is why the President strongly
supports legislation creating Association Health Plans (AHPs). AHPs would
afford small businesses the same bargaining power, administrative efficiencies,
benefit design, and benefits of risk pooling through their association or
business organization that currently are available to large employers and
union-sponsored plans.
Chao said, The department will continue to devote significant
resources to enforcing existing health laws and to work with state insurance
departments in vigorously pursuing insurance scams and risky multiple employer
welfare arrangements (MEWAs) to protect workers and their families.
There are approximately 2.6 million private-sector health plans
providing benefits to 56.7 million workers. To date, the department has
recovered over $115.7 million through 478 civil and criminal investigations
into MEWAS that affected 1.75 million participants and their families.
Questions or problems with health benefits may be directed to the
departments Pension and Welfare Benefits Administration by calling
1866-275-7922 or electronically at
www.askebsa.dol.gov.
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