WASHINGTON — The Senate Committee on Health, Education, Labor and Pensions approved legislation that would make health insurance more affordable and accessible for America's small businesses, including the 12.5 million employees of the restaurant industry.
On March 15 the HELP Committee passed S. 1955, the Health Insurance Marketplace Modernization and Affordability Act of 2005, by a vote of 11-9. According to a National Restaurant Association meeting, this legislation would allow small businesses to create fully insured Small-Business Health Plans (SBHPs) that would lower healthcare costs and increase access by providing increased competition and choices for employers looking for affordable health coverage.
Approximately 45 million Americans are without health insurance, and studies show that 60 percent of the uninsured either work for a small business or are a dependent of someone who does. Unless dramatically increasing health care costs are curbed, many employers may be forced to eliminate health benefits for their employees.
The National Restaurant Association said that 70 percent of the restaurant industry - the largest private sector employer in the country — is comprised of small businesses and recent surveys show that restaurateurs are deeply affected by the rising cost of health insurance.
SBHPs would allow small business owners to join together across state lines to purchase health insurance as a group; providing affordable health care through economies of scale, greater bargaining power and flexibility in health benefit design. By removing barriers to affordable coverage, this legislation also will greatly increase competition in health insurance markets, with substantial benefits to consumers.
