GOVERNMENT RELATIONS UPDATE

Action Needed to Oppose the Small Business Health Fairness Act

February 28, 2003

THE ISSUE AT HAND

On February 11, 2003, Representative Ernie Fletcher (R-KY) re-introduced the Small Business Health Fairness Act, H.R. 660.  This legislation aims to provide small businesses, including associations, with a better opportunity to purchase health insurance to their employees through association health plans (AHPs).  Although NASW is supportive of the intent of H.R. 660, which is to increase access to health care coverage for working people, NASW opposes this particular bill.  H.R. 660 would exempt AHPs from state laws and regulation, eviscerating existing consumer protections.  It is anticipated that identical legislation will be introduced in the Senate in the near future.

ACTION NEEDED

Please call, FAX, or email U.S. Senators and U.S. Representatives ask them to oppose the Small Business Health Fairness Act.

A sample letter has been posted on NASW's Congress Web to email or fax to Members of Congress. A sample phone message follows.  All Members can be reached through the Capitol switchboard at 202-225-3121.  Individual telephone numbers, fax numbers, and email addresses are available through NASW's Congress Web, www.socialworkers.org/advocacy/grassroots/congressweb.asp.  If you make a phone call, please let us know via email at advocacy@naswdc.org.

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Sample Phone Message

My name is ________________ from _________________ (city, state).  As a constituent, professional social worker, and member of the National Association of Social Workers, I am calling to ask Senator (or Representative) ____________ (last name) to oppose the Small Business Health Fairness Act, H. 660.

H.R. 660 would exempt association health plans from state laws and regulations, thereby eviscerating existing consumer protections and coverage requirements.

I appreciate the Senator’s (or Representative’s) strong opposition.  Thank you.   

TIMING

While there is no set timetable for moving the Small Business Health Fairness Act, it is important to opponents to be heard since this bill has a high profile; contacts should be made as soon as possible.

BACKGROUND

Existing AHPs or MEWAs aim to provide small businesses the opportunity to join together through trade and professional associations and collectively purchase health benefits at more reasonable rates than a small business alone would be offered.  Current law requires AHPs/MEWAs to be regulated under both federal and state law. The Small Business Fairness Act would exempt AHPs/MEWAs from state laws, consumer protections, and other safeguards­ significantly increasing the risk for fraud and abuse.  Recently, failures of association-type health plans have left more than 100,000 participants nationwide with over $30 million in unpaid medical bills

The National Governors' Association, the National Conference of State Legislatures, and the National Association of Insurance Commissioners have already shared their strong opposition to AHPs with Congress.  Their reasoning is that although AHPs could reduce insurance costs for some companies with young, healthy workers, many small businesses with older and sicker employees would be left behind in the regular insurance market, facing significantly higher rates.  Furthermore, the Congressional Budget Office estimates that actually AHPs would result in higher premiums for 80 percent of small businesses and their workers, which ultimately would result in more uninsured Americans.

Please contact your Members of Congress TODAY!

For additional information, contact Debbie J. Allen, Field Organizer at advocacy@naswdc.org or Francesca Fierro O'Reilly, Senior Government Relations Associate, at fforeilly@naswdc.org.

TAKE ACTION NOW

THANKS FOR YOUR ADVOCACY