Cantwell, Murray, Insurance Commissioner Kreidler Push for Real Health Care Relief for Washington’s Small Businesses
Kreidler supports Cantwell legislation to help small businesses join together, leverage purchasing power to cut costs and improve coverage
WASHINGTON, DC – Thursday, U.S. Senators Maria Cantwell (D-WA) and Patty Murray (D-WA) joined Washington State Insurance Commissioner Mike Kreidler in the U.S. Capitol to discuss the dangerous effects of a health care proposal put forward by Republican leadership that would do nothing to fix the health care crisis in America, but would strip away state insurance laws and consumer protections currently on the books. The flawed Enzi bill is opposed by governors, 41 attorneys general including Washington State Attorney General Rob McKenna, and state elected officials from both parties nationwide. Senators Patrick Leahy (D-VT), Joe Lieberman (D-CT), Blanche Lincoln (D-AR), and Thomas Carper (D-DE) also participated in the event.
“We absolutely need to make sure that small businesses can afford to cover their employees and make it easy for them to do so,” said Cantwell, a member of the Small Business Committee. “I’ve been arguing this for years. But the Enzi plan preempts state laws and permits companies to avoid benefit mandates like cancer screening or mental health parity. It is possible to make healthcare coverage more affordable for small businesses without sacrificing important consumer protections. The legislation I’m supporting makes health care affordable while preserving critical consumer protections and benefit packages, something no other proposal that I’ve seen in D.C. seems to be able to do. My plan helps small businesses pool their purchasing power, drive costs down, and deliver affordable health care to more Americans.”
The Enzi bill would preempt states’ ability to regulate the health insurance industry, allow insurers to offer plans that sidestep state benefit mandates, and repeal vital non-discrimination laws in Washington state that prevent insurance companies from discriminating against providers such as dentists, nurse midwives, nurse practitioners and psychologists. More than 1.8 million Washington residents would be directly affected by this bill, and would lose critical benefits including coverage for hospice care, mammography screening, maternity, mental health, emergency services, diabetic supplies, and more.
At present, more than 50 percent of America’s 46 million uninsured work for small businesses. Forty-six percent of Washington’s workers are employed by small businesses. The smaller the company, the less likely it is to offer coverage. Forty-seven percent of Washington companies with fewer than ten employees do not offer health care coverage, while only three percent of companies with over 100 employees do not. Thirty-eight percent of all Washington companies, large and small, do not offer health insurance.
To create an affordable health insurance program for America’s small businesses, Senator Cantwell joined Senators Max Baucus (D-MT), Richard Durbin (D-IL), and others earlier this year to introduce the proposed Small Employers Health Benefits Program (SEHBP). This initiative would let small business join together to pool risk and leverage purchasing power, reducing costs and promoting choice between competing plans. The SEHBP Act, cosponsored by Cantwell, is based on the successful, decades-old Federal Employees Health Benefits Program (FEHBP), which provides extensive benefit choices at affordable prices to Congressional and federal employees. The proposed SEHBP program would be open to all employers with 100 employees or fewer. The employees themselves would choose which plan, if any, they want to join. Tax credits would be available to businesses that cover more than 60 percent of an employee’s premium. Employers would also receive additional tax breaks for covering the premiums for low-income workers. Credits would increase for family coverage.
The Office of Personnel Management (OPM), which oversees FEHBP, would manage SEHBP and ensure compliance by the private insurers wishing to compete for the business of program participants. This would guarantee that small business employees receive appropriate benefits at reasonable prices, reduce administrative costs, and free business owners from the burden of negotiating with health plans.
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