If you are like most people, you have wondered, more than once, “Do politicians ever listen to regular people like me?”
What can I say right now: Hallelujah. Someone is listening.
Allow me to back up a little. We have become hoarse from crying out for help on the issue of purchasing health care. Costs are high, and with any problem the rates jump two to 10 times! We know how difficult, how very expensive it is to purchase health insurance for yourself as an individual, and for a small group of employees.
A number of elements are working against small businesses when it comes to this all-important purchase. First, the dynamics of economies of scale work against them: it’s like buying groceries piece-by-piece rather than in bulk. Not only is it always cheaper, per piece, to buy a crate or a bushel , but when it comes to health insurance, one also needs to be part of a large risk pool to keep the price down.
Add to this the state and federal mandates and regulations that well-intentioned politicians have, for years, been imposing on health insurance. Forcing health insurance companies to offer a certain level of benefits may sound like a good idea on the surface, but nothing in this world is free, and we as consumers end up paying for every mandate the government lays down.
Strangely enough, federal law exempts labor unions and really big employers who self-insure from these mandates, leaving smaller businesses with fewer coverage choices and a bill that grows and grows until they can’t afford it anymore.
In his health-care reform proposal announced last month, Texas Gov. George W. Bush discussed these barriers , barriers that have resulted in a shocking number: Of the 44 million Americans without health insurance, three out of five come from a family with a breadwinner who is self-employed or works for a small business.
And beyond recognizing the problem, Gov. Bush proposed a solution, one that small-business owners have wanted for some time now: for the government to allow Association Health Plans (AHPs).
Gov. Bush pledged that, if he is elected President, he will work to “allow small businesses to band together, across state lines, to purchase insurance from bona fide trade associations, such as the Chamber of Commerce or the National Federation of Independent Businesses. AHPs will enjoy the benefits of economies of scale and a larger risk pool, and thus reduce the cost of health insurance for millions of small businesses and their employees.” AHPs will also exempt small businesses from those expensive mandates, increasing the available choices for affordable health plans.
Gov. Bush’s voice, right now one of the loudest in America due to his candidacy, will make our cries for this reform ring out over the coming campaign months.
Faris is director of the National Federation of Independent Businesses.
