Statement of Labor Secretary Elaine Chao On Senate Task Force AHP Recommendation

Release Date: 5/11/2004

WASHINGTON -- U.S. Secretary of Labor Elaine L. Chao today released the following statement regarding the recommendation by a U.S. Senate Health Care Task Force that Association Health Plans (AHPs) be considered as one way to make insurance more affordable: "Today's endorsement of AHPs by the Senate Health Care Task Force is another step in the right direction toward more accessible and affordable health insurance for America's small-business employers and workers. Senators Frist, Gregg, Snowe, Talent, Sessions and the other members of the Task Force deserve a great deal of credit for their leadership on this issue. "President George W. Bush and this Administration care deeply about expanding access to affordable health care. One of the biggest problems is that small businesses pay 20-30 percent more than do large employers for similar benefits. That's why these small-business health plans are so critical. "AHPs will help provide small businesses with a secure and affordable way to close the health coverage gap and provide quality health care for their employees. "Also, by allowing small businesses to pool their buying power and spread their risk, AHPs will put small businesses on an equal footing with large employers and unions. The current situation is unfair to small employers and their workers, and that's why it is so important for Congress to act on AHP legislation as soon as possible."