During the past five years, small-business owners have seen the highest increases ever in their health-care costs, a problem that virtually everyone agrees is unsustainable. More than 27 million of the uninsured across America are small-business owners, employees, or dependents of small businesses with less than 100 employees. They account for the largest segment of the uninsured population.
Small-business owners want to take care of their employees and their families, but it's become increasingly unaffordable when they face double-digit increases year after year. And they are feeling the effects. In 2000, 47 percent of those NFIB members surveyed cited health-care costs as a "critical" problem. In 2004, two-thirds of respondents listed health-care costs as a "critical" problem. That's a 40 percent increase over a four-year period.
Not only do they have the desire to provide good health-care benefits to their workers, they also feel they must do this to compete with big business and big labor. Small businesses don't mind competing, and they compete successfully against larger companies every day. All they ask for is a level playing field. But, the facts show that only 41 percent of firms with nine employees or less can afford to offer health benefits, compared with 99 percent of large firms. Small-business owners want to offer competitive benefits so they can recruit and retain good employees.
After many years of fighting to allow small businesses to have more of a voice in their health care choices, there is a strong bipartisan bill in the Senate from Sen. Mike Enzi of Wyoming, chairman of the Health, Education, Labor and Pensions Committee, and Democratic Sen. Ben Nelson of Nebraska. They both agree that something must be done soon to help curb costs for America's small business.
S.1955, "The Health Insurance Marketplace Modernization and Affordability Act of 2005," will allow for the creation of of Small-Business Health Plans, which will give small employers the same buying power as Fortune 500 companies and unions.
In addition to addressing the fairness issue, S.1955 also will lower health-insurance premiums by double digits for small employers nationwide, and provide coverage for significantly more uninsured people, according to an independent actuarial study conducted by Mercer Oliver Wyman.
And the bill has gained support that goes beyond party lines. A recent national survey showed that 89 percent of voters - Republicans, Democrats and Independents - favor SBHP legislation. This survey makes it clear that to the American public, this isn't a partisan issue, and it shouldn't be in Washington, either. "This isn't about politics - it's about giving small businesses relief from soaring health-insurance costs.
To demonstrate the broad support for SBHPs, last week we delivered nearly 45,000 petitions from small-business owners to every Senate office.
We expect the full Senate to consider and vote on S.1955 in the second or third week of May. Unlike the House of Representatives where a simple majority is all that is required to pass legislation, we will most likely need 60 votes in the Senate in order to pass S.1955.
The time for the Senate to act is now. America's small businesses are the heart and soul, not to mention the job creation engine, of our economy. Please urge the Senate to pass S.1955 and make health care work for small businesses, so small business can keep working for America.
For more information about SBHPs, go to www.SBHPAlert.com
S.1955 is headed for full Senate vote this week.
Todd Stottlemyer is the president of NFIB (the National Federation of Independent Business), the nation's largest small-business advocacy group.
