If there’s one concern I’ve heard time and again from small businesses in Maine and across the country, it’s the exorbitant cost of providing health insurance to employees.  I can’t tell you how many people who run small businesses have told me how much they want to offer health benefits to their employees, but can’t.  As costs rise, small businesses are forced to choose between the solvency of their business and the welfare of their employees.  This past week, a new coalition is taking aim at addressing this ongoing problem.

Led by Majority Whip Dick Durbin (D-IL) and Senators Blanche Lincoln (D-Ark) and Norm Coleman (R-Minn), we introduced breakthrough legislation aimed at making health insurance plans more affordable for small businesses.  The Small Business Health Options Program (SHOP) is designed to make insurance more available and affordable for the 41.7 million employees of the nation’s 5.8 million small businesses with fewer than 100 employees.  This hybrid legislation transcends partisan politics and puts the focus where it belongs – on providing health insurance options that are more affordable and accessible for small businesses and their employees.

This new effort has attracted widespread support that includes the National Federation of Independent Businesses, the National Association of Realtors and the Service Employees International Union.  Together, we are forging a new path that is determined to not let the politics of the day stop us from finally addressing the number one issue to small businesses.

This bill will level the playing field by allowing small businesses and the self-employed to pool together the same way larger employers are able to do so they can secure quality, affordable health insurance at significantly reduced costs.  By taking action now, and passing the SHOP Act, we can partner with our nation’s job creators and provide better health care options with more choices for less cost.

The SHOP Act will alleviate the high cost of providing health care for employees by allowing small businesses and the self-employed to band together across state lines and spread the risk over a large number of participants in order to obtain lower premiums.  By fostering an environment that supports competition, costs will be driven down while access to services will broaden.  Considering that 98 percent of the market in Maine is controlled by only a handful of insurers, the added competition would have a substantial impact on Maine’s small businesses.  Simply put, this bill will keep prices low by offering a range of private health plans that have to compete for business.

At the same time, small businesses will also be provided with the opportunity to receive targeted tax to offset contributions to employee premiums.  Insurance premiums have skyrocketed by 78 percent since 2000, so we must do more to alleviate this growing burden on our nation’s job creators.  The SHOP Act combines annual tax credits up to $2,000 per worker for small business owners and $3,600 for the self-employed.

Equally important to making health care benefits more affordable for small businesses in protecting the quality of the plans themselves for employees.  The SHOP Act ensures that important protections and standards implemented by the states are recognized so that there is a minimum standard of care that will be guaranteed for employees.   I am pleased that the Maine Bureau of Insurance has sent me a letter of strong support for the SHOP Act.

The broad array of support that the SHOP Act has received can be attributed to the strength of its key provisions that protect employees and provide more affordable options for small businesses.  We took the best elements of different plans and combined it into one proposal that with one voice, we are working to advance.  At a time when the businesses are cutting a record number of jobs, we need to do everything possible to provide support and relief for our nation’s job creators.  Time and time again, small businesses have said that the health benefits issue is their number one challenge.  With the introduction of the SHOP Act, Congress has no excuse not to take immediate action to help small businesses.

This entry was posted on Friday, April 4th, 2008 at 4:27 pm and is filed under Politics, Healthcare .