Evening Bulletin: Area Reps Back Health Insurance Buying Reform

Thursday, May 14, 2009

 

Area Reps Back Health Insurance Buying Reform

By Bradley Vasoli, The Bulletin

Federal legislators, some from near Philadelphia, said yesterday that legislation they back would reduce the cost of employer provided health insurance by allowing small businesses to join a national purchasing pool.

 

 

Supporters say that about 47 million employees of America’s 5.8 million small businesses stand to benefit from joining the voluntary pool through reduced group pricing. The self-employed as well as agriculturalists would also be able to participate.

 

"We think the time is right now with where we see health-care reform going,” U.S. Rep. Ron Kind, D-Wis., said of the measure he has authored. "Obviously this isn’t a comprehensive health-reform package; it’s one more targeted to the needs of small businesses, self-employed, farmers and ranchers.”

 

Mr. Kind said his bill represents an approach that respects the difficulties many businesses have affording health-insurance plans for their workers.

 

"Clearly we’re not going to be able to mandate coverage for small businesses with their employees,” he said. "That’s just a non-starter and we all recognize that. We think through this incentive, voluntary approach with revamping the tax code through tax credits, this would be a much more efficient and much more universally accepted means to move forward.”

 

The bill also provides tax credits of $1,000 per employee to small businesses that cover 60 percent of their employees’ premiums and more credits if the businesses pick up the tab above that percentage. The bill contains other tax benefits for the self-employed.

 

U.S. Rep. Jim Gerlach, R-6th, of Berks, Chester, Lehigh and Montgomery counties, is the principal Republican sponsor of the bill. Other co-sponsors from the area include U.S. Reps. Allyson Schwartz, D-13th, of Montgomery and Philadelphia counties, and Charlie Dent, R-15th, of Lehigh, Northampton, Montgomery and Berks counties.

 

"By expanding these new pooling options, we’re going to improve competition and help small business owners access more affordable health insurance,” Mr. Dent said.

 

Mr. Gerlach said he believes all major pockets of opposition to the bill have faded by this point. The National Federation of Independent Businesses, the Service Employees International Union and the National Restaurant Association, among other varied interests, have come out in favor of it.

 

"We think it’s a really interesting mix of organizations that are supportive of it,” he said.

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