SBA Administrator Praises House Passage of AHP Legislation

Release Date: 5/18/2004

WASHINGTON, D.C. -- Hector V. Barreto, administrator of the U.S. Small Business Administration, today praised House passage of the Small Business Health Fairness Act (H.R. 4281), which would allow small businesses to pool their resources to purchase quality, affordable health care for their employees. "I am very pleased that the House has once again passed legislation to allow the creation of Association Health Plans, and I would like to thank the House leadership, Chairman Boehner, and Chairman Manzullo for their hard work on this legislation," Barreto said. "Everywhere I go, when I talk to small business owners, the cost of health care is their greatest concern," Barreto added. "Small business owners want to provide health care for themselves, their families, and their employees, but too often they simply cannot afford it. We made real progress when the President signed his Medicare reform legislation into law last year, creating Health Savings Accounts, but now it is time to take the next step. Association Health Plans offer small businesses the chance to pool their resources so they can negotiate for quality, affordable health care, just like big corporations. It is time for the Senate to act to give America's 25 million small business owners, and their employees, that opportunity." The bill, which passed by an overwhelming bipartisan majority of 252-162, will allow small businesses to band together through trade and professional associations to purchase affordable health packages for themselves and their employees. Today, while corporations and unions are free to band together across state lines to purchase health insurance at discount rates, state rules prevent small businesses from doing likewise. AHPs level the playing field. By allowing small businesses to join together and pool their resources, AHPs would give them the opportunity to employ the same bargaining and purchasing power that larger corporations and labor unions already have.