Health Care

ISSUE BRIEF: Small Business Health Care

April 2009

Issue:

Over 46 million American workers are uninsured because they cannot obtain health care or they cannot afford it. Many employers want to provide basic health benefits to their employees but cannot afford annual double-digit increases in health insurance premiums.
 

Background:

ARA is a member of the Small Business Coalition for Affordable Healthcare (the Coalition), a coalition of more than 100 trade associations representing employers and individuals who purchase health insurance in the small group and individual markets. The Coalition has been involved in discussions with key Senators who are crafting a health care reform proposal as well as key House members who are engaged in a similar process. The Coalition has developed a detailed set of principles that are focused on market-based reforms to expand competition and choice in all markets for the purchase of private health insurance. Significant elements of reform supported by the Coalition are:
 

Market-Based Pooling Arrangements

• Market-based pooling arrangements achieve greater purchasing clout, spread risk, and lower administrative costs. This means greater affordability and choices for the purchase of private health insurance for business owners and their employees.
   
• Such pooling approaches might include purchasing pools, connectors and exchanges.

Tax-Based Health Insurance Incentives

• Tax credits can be applied toward the cost of private health insurance for employers, the self-employed and individuals.
   
• Tax-equity for the self-employed and individuals is a significant step toward creating a more level playing field on the tax treatment of health insurance.

New Healthcare Markets, Marketplaces and Products

• Small businesses want the flexibility to choose the health insurance packages that best meet the needs of their workforce.
   
• These products should be comprised of a range of choices that include traditional insurance products, account-based arrangements and cafeteria plan options that allow consumers the freedom to spend healthcare dollars as best fit their needs. 

Understandable and Easy to Compare Healthcare Information

• Too often, healthcare information is difficult to obtain and incomprehensible to consumers.  Improved transparency is critical to making sure that all consumers –including employers, employees and individuals across all insurance markets – have accurate and useful information on costs, quality and performance of products.
   

Action Requested:

Support market-based health care reform.