5 Reasons Small Businesses Need Association Health Plans
This week, Chairwoman Foxx joined President Trump at the White House as he signed an executive order to allow small businesses to join together through association health plans (AHPs). House Republicans have been fighting for this type of free-market reform for years. In fact, the Committee on Education and the Workforce advanced and the House passed legislation earlier this year to expand access to affordable health care for small business employees through AHPs.
The President’s action is certainly a victory for small businesses and their employees, and here’s why:
1. 56,800,000. That’s the number of workers employed by a small business, representing nearly half of the private-sector workforce. And it’s the number of people who stand to benefit from association health plans.
2. Small businesses need more options. Obamacare has hit small businesses especially hard, leaving them with fewer choices. As one small business owner explained to Congress:
“As a small business owner, I recall the days before the ACA when we would receive a 2-inch notebook that contained multiple quotes from different health insurance companies. Now, our options are listed on a single legal sized sheet of paper.”
3. Small businesses face soaring health care costs. According to the National Federation of Independent Business, the cost of health care was the top concern to small businesses in 2016.
Because of rising costs, many small businesses have been forced to stop providing coverage to their employees. In fact, since 2008, the share of small businesses with fewer than 10 employees offering health coverage has declined by 36 percent.
4. Jobs are at stake. Because of soaring costs under Obamacare, small businesses have lost 300,000 jobs and $19 billion in lost wages. At least 10,000 small businesses have closed their doors, according to the American Action Forum.
5. It’s about fairness. Due to their size and economies of scale, large businesses and labor organizations are able to negotiate for high-quality health care at a more affordable cost for their employees. Small businesses don’t have the same bargaining power.
Relief is on the way. AHPs will make a real difference in the lives of millions of small business employees by leveling the playing field, expanding affordable health care options, and promoting a more competitive health insurance marketplace. Learn more here. Read more »
Since the National Labor Relations Board (NLRB) adopted its extreme joint employer scheme two years ago, local businesses across the country have been calling on Congress to act. As Chairwoman Foxx recently said, “their concerns haven’t gone unanswered. Clearing up the confusion and uncertainty surrounding the joint employer issue has long been a priority for this committee.” That’s why, today, the committee will mark up the Save Local Business Act (H.R. 3441), bringing us one step closer to delivering the joint employer clarity these hardworking men and women desperately need:
• “[The Save Local Business Act] is just one example of how policy changes that reduce regulation and unnecessary red tape can spark optimism within the small business community.” — Matthew Lewis, Sport Clips, Raleigh, NC
• “When you’ve worked your way up from the bottom like I have, you don’t like to see anyone knock you back down. It's time we clear up the confusion of joint employer for local business owners and all of those depending on us, and I am confident that the Save Local Business Act does just that.” — Tamra Kennedy, Taco John’s, Roseville, MN Read more »
Small businesses work hard to create local jobs and opportunities, and they invest directly into their communities. But because of an extreme and unworkable joint employer rule, many small business owners are now mired in a confusing legal landscape they never planned for. Tamra Kennedy, a local restaurant owner, recently shared her story on how the new joint employer scheme puts her business at risk. Watch:
We should be making it easier, not harder, for local business owners like Tamra to succeed. The Save Local Business Act restores the commonsense understanding of what it means to be an employer, and provides small businesses with the joint employer relief they need. Read more »
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