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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. Millions of Americans 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 they try to provide for their employees. 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 who want to do what’s right for their employees have been forced to stop providing coverage. 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 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.