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OPA News Release: [04/01/2004]
Contact Name: Ed
Frank
Phone Number: (202) 693-4676
U.S. Labor Secretary Elaine L. Chao Calls AHPs
“Secure, Affordable Way for Workers of Small Businesses to Access Quality
Health Care”
WASHINGTON—U.S. Secretary of Labor Elaine L. Chao today
participated in a Capitol Hill news conference in support of legislation that
would create Association Health Plans (AHPs) and help make health insurance
more affordable for workers of America’s small businesses.
“President George W. Bush and this Administration care deeply about
expanding access to affordable health care,” said Secretary of Labor
Elaine L. Chao. “Association Health Plans are a secure and affordable way
for workers of small businesses to access quality health care.”
“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,” Chao continued. “Large employers and unions
already have the ability to get the cost savings that AHPs provide. Why
shouldn’t Main Street's small-business owners and workers who drive our
nation’s economy also have this basic right?”
AHPs would allow small businesses to join together across state lines
through their trade and professional associations to purchase health benefits,
reducing the market and financial barriers that they face. Small businesses
would enjoy greater bargaining power, economies of scale, administrative
efficiencies, and more uniform regulation, giving them more access to
affordable coverage. Studies show that AHPs could save small employers and
their employees as much as 25 percent on their health insurance costs. AHPs
would be subject to rigorous fraud protections enforced by the Department of
Labor, offering working Americans and their families a secure means of
accessing affordable, quality health insurance.
Secretary Chao has met with small-business owners around the country to
discuss the high cost of health insurance and potential remedies, including
AHPs. President Bush has also repeatedly voiced his strong support for AHPs,
including a call for the legislation in his State of the Union Address.
Legislation creating AHPs passed the U.S. House of Representatives on June 19,
2003, with strong bipartisan support. The bill is pending in the U.S.
Senate.
“As the President said in his State of the Union Address, it’s
time for the Congress to act and pass this bill,” Chao concluded.
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