Large corporations and unions have competitive advantages when purchasing health care for their workers that small businesses do not. AHPs allow small businesses to enjoy these same advantages when it comes to purchasing insurance. AHPs will give the freedom to design and to offer more affordable benefit options and offer workers access to more comprehensive health coverage choices.  New coverage options for both the self-employed and workers in small businesses will promote greater competition and choice in health insurance markets. Ford, Wal-Mart and similar-sized employers have these advantages, and so should every Mom-and-Pop store.

There is no question that health insurance premiums are on the rise.  Therefore, it is vital that we provide small business owners with more affordable insurance options.  Small business is the catalyst of our national economy and half of new jobs created are in small businesses.  President Bush has stated, "...to make sure the entrepreneurial spirit remains strong, we need to address the issue of the cost of health care."  Savings from legislation like AHP's could bring down the cost of hiring an employee, which will make new business hiring a reality.

AHP legislation calls for tough consumer protection provisions that will protect patients' rights and ensure that benefits are paid. Only bona fide associations, which are in existence for at least three years for purposes other than providing health insurance, can operate an AHP. AHPs must offer all available options to all employers and individuals in the association. The legislation makes clear that AHP's will have to comply with the Health Insurance Portability and Accountability Act (HIPAA), prohibiting group health plans from excluding high-risk individuals with high claims experience.

The legislation preserves the traditional state role in regulating the business of insurance, ensuring that insurance policies purchased by AHP's will still be subject to state solvency standards; important consumer protections such as prompt pay laws, external review, and marketing guidelines; and disease specific benefit requirements.

I believe the Small Business Health Fairness Act will help reduce the number of people without health coverage in Kentucky and in America. The U.S. House of Representatives agreed with me and passed the legislation with strong support from Republicans and Democrats. It is time for the U.S. Senate to step up to the plate and do the same. I implore the Senate to pass this legislation and to send it to the president for his signature.

In a column in the Louisville Courier-Journal, May 11, 2004