The following article, written by NFIB's Manager of Legislative Affairs Amanda Austin, appeared on the Press-Enterprise Web site Aug. 16, 2006

Small-Business Health Plans can decrease costs and increase coverage for the small-business community. By joining together, small employers will see savings from greater bargaining power, economies of scale and administrative efficiencies.

As health-insurance costs continue to increase at a record pace for America's small-business owners, fewer small employers are able to afford health insurance for themselves, their employees and their families.

According to a 2006 survey by the Employee Benefit Research Institute, 27 million small-business owners, their employees and their dependents are currently without health insurance. In California alone, there are more than 4.5 million uninsured working individuals, a large percentage of whom are employed by small businesses.

The National Federation of Independent Business, the nation's largest small-business advocacy group, strongly supports creating Small-Business Health Plans.

Small-Business Health Plans would allow small businesses to band together through trade and professional associations to purchase affordable health benefits.

As federal laws stand today, labor unions and Fortune 500 companies are already allowed to cross state lines without being subjected to costly state regulations, excessive mandates and high administrative costs. All the small-business community is asking for is a level playing field and a fair health-care market.

Here's how Small-Business Health Plans can lower costs for Main Street employers: Soaring premium rates would be lowered and high administrative fees would be significantly decreased.

A November 2005 National Federation of Independent Business study comparing the performance of Small-Business Health Plans to other standard health-care plans shows that the small-business plans would lower administrative costs by an average of 14 percent. This would be a huge help to the smallest firms, where administrative fees are a major percentage of their expenses.

In addition, these plans would allow small-business owners a choice in health insurance providers that they currently lack. According to the Government Accountability Office, five or fewer insurers control at least three-quarters of the small-group market in most states.

These plans would give small businesses the ability to compare rates and choose among competing insurers. As it stands now, many small employers are often forced to choose between paying high costs they can't afford or taking insurance away from their employees.

As small business is America's No. 1 job creator and represents 99 percent of all employers, the access and affordability of health care for the small-business community is not just a "small-business problem." It is an American problem, and it is a problem that demands the attention of our federal lawmakers.

To learn more about Small-Business Health Plans and current legislation, please visit NFIB.com or SBHPsNow.com.