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EBSA News Release: [05/14/2003]
Contact Name:
Kathleen Harrington
Phone Number: (202) 693-4676
Secretary of Labor Elaine L. Chao Meets with Pittsburgh
Small Businesses on Access to Health Insurance Options
“AHPs Can Increase Access to Affordable Health
Coverage for Workers in Pennsylvania”
PITTSBURGH, Pa.—U.S. Secretary of Labor Elaine L. Chao today
participated in a roundtable with small business employers in Pittsburgh, Pa.
The secretary heard about the difficulties small business owners face in
obtaining access to affordable, quality health insurance for their employees
and their families.
“As I meet with small business employers around the country, I hear
about the difficulty of getting access to affordable, quality health
care,” said Chao. “Small employers are among the main creators of new
jobs in our economy. Small business employers have expressed their deep concern
about the jumps in healthcare cost insurance every year as they struggle to
provide this benefit for their employees.
“Pennsylvania can be proud that 98 percent of employers with 50 or
more workers offer health coverage. The lack of options and the exceptionally
high costs of healthcare, though, prevent many small businesses from offering
health coverage. Association Health Plans can provide more options and reduce
the cost of health coverage for small employers and their employees. The
President and I are committed to addressing this critical issue facing small
businesses and their employees.”
According to a survey by the Kaiser Foundation, employers in
Pennsylvania pay higher premiums than employers as a whole nationwide.
Insurance premiums in Pennsylvania have been steadily rising, increasing 47
percent for families from 1996 to 2000. In 2000 alone, premiums jumped 24
percent.
President George W. Bush’s health reform proposals would allow for
the creation of Association Health Plans (AHP), which will allow small
employers to pool their buying power and offer lower cost health coverage to
employees and their families. Under AHPs, barriers that prohibit small
businesses from offering health insurance will be reduced or eliminated while
consumer protections will be enforced and even increased. Most importantly,
AHPs will allow more working American and their families to have the security
of affordable, quality health insurance.
The roundtable is being hosted by the Associated Builders and
Contractors of Western Pennsylvania, the National Federation of Independent
Business, the National Restaurant Association, the Pennsylvania Restaurant
Association, the U.S. Chamber of Commerce and Women Impacting Public
Policy.
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