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House Approved Measure to Establish Association Health Plans Nearly a Year Ago

WASHINGTON, D.C.—House Education and Workforce Committee Chairman Howard P. "Buck" McKeon (R-Calif.) and Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-TX) today called on the Senate to pass legislation aimed to empower small businesses to band together and provide quality health care at a lower cost to their workers. The Senate is currently considering this measure—for the first time in its history.

In July 2005, the House overwhelmingly backed Johnson's bill, the Small Business Health Fairness Act (H.R. 525). The legislation to expand access to quality health care for millions of working families by creating association health plans. Three dozen House Democrats supported the legislation.

"I can only hope that at the outset of this process, Senate Democrat leaders won't obstruct legitimate progress on legislation that is meant to provide health benefits to uninsured working American families," said McKeon. "With nearly 45 million Americans living without health insurance, the time for action is long overdue. The House has consistently supported legislation to expand health care access for American families, and it's time for the Senate to finally move forward as well."

The U.S. Census Bureau announced last summer that 1.4 million more Americans were without health insurance compared to the previous year. More than 60 percent of these uninsured Americans either work for a small business or are dependent upon someone who does. The House-backed Small Business Health Fairness Act would create AHPs to increase small businesses' bargaining power with health care providers, give them freedom from costly state-mandated benefit packages, and lower their overhead costs by as much as 30 percent - benefits that large corporations and unions already enjoy because of their larger economies of scale.

"For years, the House has acted to help small businesses deal with rising health insurance costs with AHPs," concluded Johnson. "It's time for the Senate to follow our lead. I've said it many times before, and I'll say it again. If it's good enough for Wall Street, it's good enough forMain Street."

A broad and diverse coalition of more than 160 groups have endorsed association health plans, including the U.S. Chamber of Commerce, the National Federation of Independent Business, the American Farm Bureau Federation, the Associated Builders and Contractors, The Latino Coalition, National Black Chamber of Commerce, the National Association of Women Business Owners, and the National Restaurant Association.