NRA Supports Association Health Plans
Release Date: 8/30/2004

 

WASHINGTON, D.C. - The National Restaurant Association underscored the urgent need for Americans' access to affordable health care as the U.S. Census Bureau announced today that the number of Americans without health insurance has increased to 45 million people - up nearly 1.5 million people from the previous year.  The Association said it would continue its proactive efforts to secure passage in the U.S. Senate of Association Health Plan (AHPs) legislation which will allow small businesses to join together to provide quality, affordable health insurance to employees and their families.    

"The new numbers released today by the U.S. Census Bureau offer a disturbing look at the state of the American health care system.   It is critical that the U.S. Senate act swiftly to address this problem in a
manner that is in the best interests of American workers and their families," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association.  "Our members are
committed to increasing access to quality health care for small business employees through the creation of Association Health Plans, and through our strong grassroots efforts we hope to spur action in the Senate and make Association Health Plans a reality for millions of Americans who struggle with the lack of affordable health insurance on a daily basis."

AHP legislation has passed the U.S. House of Representatives and was introduced in the Senate by Sens. Olympia J. Snowe (R ME), Kit Bond (R MO) and Jim Talent (R MO) to expand health care access for millions of uninsured Americans.  Recent studies also show that 60% of uninsured Americans work for a small business.

The restaurant industry, the largest private-sector employer in the country, is dominated by small businesses.  Seventy percent of all eating-and-drinking places have annual sales of less than $500,000 and an average work force of fewer than 50 employees.  In surveys, restaurateurs have routinely said that cost is the biggest hurdle to purchasing or providing health coverage.

AHPs enable small businesses and their employees to benefit from the same opportunities as those employed by large businesses and unions: affordable health care through economies of scale, greater bargaining power, regulatory uniformity and flexibility in health benefit design. By removing barriers to affordable coverage, this legislation will also greatly increase competition in health insurance markets, with substantial benefits to consumers, and a positive effect on the economy.

Restaurants are deeply affected by the rising cost of health insurance. Studies have shown that premiums in recent years have increased by an average of 23 percent for tableservice restaurants alone.  Unless the increased health care costs are curbed, many employers might be forced to eliminate health benefits for their employees. For more information on the National Restaurant Association's efforts on Association Health Plans, visit www.restaurant.org.