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By Scott Nicholson
Watauga Democrat

Fifth District Rep. Virginia , R-N.C, heard the needs of business owners while campaigning last year and followed that up with co-sponsoring legislation that could help businesses pay less for health insurance.

Foxx serves on the House Committee on Education, which recently approved the Small Business Health Fairness Act (H.R. 525). The purpose of the bill is to allow small business owners across the nation to band together through membership in trade associations and purchase health care for their dependents and employees. Foxx said by forming larger pools, they will get lower health insurance rates because the risk of claims is spread out among a greater number o people.

Association health plans (AHPs) will help put smaller businesses on the same footing as large corporations in searching for insurance providers.

“While nearly 98 percent of new jobs in America are created by small businesses, many of these companies cannot afford to provide health insurance to their employees due to skyrocketing premium costs,” Foxx said in a press release. She said her experience as a small business owner helped her understand the challenges of providing benefits to employees.

“Last year, while I was out campaigning, that's all I heard about,” she said. Rising insurance costs have forced some business owners to reduce or eliminate the health insurance they provide employees.

Ben Henderson, owner of Bare Essentials Natural Market in Boone, had spoken with Foxx about rising insurance costs for small businesses during one of her “listening tours.” Henderson said he wasn't aware of the specifics of the health fairness act, but said he would welcome any option that might lower costs.

Henderson said eight employees are on his “small group plan,” which is not affiliated with any other group. “We don't even have a lot of claims,” he said. “It goes up regardless of whether or not you use it. If we got sick, then I'm sure it would go up. Henderson said he has offered health insurance to his employees for the last eight years, and rates go up every year. “Sometimes it's a little, sometimes it's a lot,” he said. “We recently got a renewal for May, and costs are going up 12 percent for the same policy.”

Henderson said he wasn't aware of any association for which his business would be eligible, but said AHPs would “certainly be worth looking at” and was glad Congress was looking at ways to lower insurance costs.

“I'd like to have as good of an insurance plan as members of Congress have,” Henderson said.

A web site maintained by the Coalition Supporting Access Choice Through Association Health Plans says small-business owners could purchase health benefits through a trade or professional; association. The trade or professional association then purchases and processes health insurance for a large group of business owners, which gives the group “purchasing clout,” streamlines administration and leads to volume discounts.

The coalition said AHPs are currently regulated by individual states, so that AHPs have to follow different rules in each state, making it difficult to administer programs in multiple states. That, in turn, limits the size of the association.

Foxx agrees with the coalition that passage of the bill would reduce the number of Americans currently without health insurance, estimated at 45 million people. About half of those work in a small business or are the dependents of someone who works in a small business.

The coalition also said AHPs would strengthen health insurance markets by creating greater competition that would benefit consumers because they would have expanded access to health coverage.

Foxx said the U.S. House of Representatives had passed a similar bill before, but again the Senate will be the main obstacle. President George Bush is in favor of it.

Foxx said the Health Fairness Act would free businesses from buying into “costly state-mandated benefit packages” and potentially cut premiums by up to 30 percent.

U.S. Census data reveals that the ranks of the uninsured are increasing, with a 15-percent jump between 2001 and 2002. During that same span, the number and percentage of people covered by employment-based health insurance dropped 1.3 percent. Nearly 12 percent of all children are without health insurance.