Health Care
The rising cost of health care coverage is one of the biggest challenges manufacturers face today. In several states, small-business owners have only one or two insurance companies from which to choose—a monopolistic atmosphere producing out-of-sight prices. Of the 46 million Americans with no health insurance, 27 million are small-business owners, their employees and dependents.
The House and Senate need to work together to find a solution to the skyrocketing costs that small businesses manufacturing in America incur providing health care to their employees.
- Cost is the biggest barrier to health coverage. The best way for Congress to help business with the cost of health coverage and cover more Americans is to help make health care more affordable.
- Small businesses have little buying power and few affordable options – five or fewer insurers control at least three-quarters of the small group market in most states (GAO, 2002). This lack of competition is contributing to double-digit rate increases for small businesses and a rise in the number of employees who are uninsured.
- The National Federation of Independent Business has estimated that small businesses stand to save a large percentage of their overhead and can increase their global competitiveness through a reduction of healthcare costs.
- Congress should provide relief for American employers and employees by enacting sound policy such as the Small Business Health Options Program Act (SHOP Act) that will make health insurance more affordable, predictable, and accessible for small businesses and the self-employed. It offers tax incentives to small businesses and allows businesses to cross state lines and pool their resources to increase their collective purchasing power and reduce rates.