Video description: Small business owners converged on Washington to demand immediate health care reform. There is very little choice when it comes to small group insurance plans, making the ability to grow a business unaffordable to many small business owners. (ALEX THOMAS/MNS)
WASHINGTON – Small business owners everywhere are suffering, and it’s not just because of the recession. Insurance costs are higher than ever and small businesses are dwindling fast.
Small business owners are asking Congress for immediate health care reform. Rising health insurance costs have made it almost impossible for many small businesses to hire new employees and expand. The problem is they don’t have much of a choice when it comes to health care. The largest small group insurer now controls a market share of nearly 50 percent, and insurance costs have increased more than 120 percent over the past decade.
The Affordable Health Care for America Act would provide more coverage choices. The Senate’s Health, Education, Labor and Pensions Committee met with more than 100 small business owners to discuss what the legislation would mean for them. Committee chairman Sen. Tom Harkin ,D-Iowa, pointed out that most “crippling spikes” in insurance premiums occur for reasons outside of the control of the business.
“For premiums to skyrocket, all it takes is one diagnosis for one employee, or even the spouse of an employee, or just one older employee,” said Harkin. “I do not believe this is right in this country of opportunity.”
Harkin outlined the new legislation and said it, “will increase competition by providing small businesses with the choice of a public insurance plan.”
Small business owners are pushing Congress to pass the legislation soon, as many are at a standstill and cannot do much while paying such high costs.
The committee’s ranking member, Sen. Mike Enzi, R-Wyo., agreed that small businesses cannot continue to sustain these types of price increases and that health care reform is necessary. However, Enzi opposed this specific legislation.
“Our economy can’t take the higher taxes, higher unemployment, and higher mandates these bills impose,” said Enzi. “Taken together, the new taxes, mandates and regulations in these bills will cumulatively increase health insurance premiums for millions of Americans who currently have health insurance.”