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Dear small business owner:
We know, as you do, that most small business owners want to provide health insurance for their employees. But with health insurance costs rising six times faster than inflation, small businesses are finding it more and more difficult to provide health insurance.
Many small businesses face the additional burden of volatile rates. Under current insurance industry practices, rates are highly sensitive to changes in an employer’s workforce. When one or more employees have pre-existing medical conditions, require extensive medical care, or are women in their child bearing years, health insurance premiums jump sharply, sometimes so much that the employer can not continue to provide coverage.
Two bills before the State Senate would address these problems. But these bills won’t pass unless small business owners speak out for reform.
HB 2005 would require insurance carriers to use “community rating” when pricing small group coverage. It also would limit expenditures by insurance carriers on overhead, marketing, and profit to 15 percent of premium revenue.
SB1137 would authorize a private carrier to provide a subsidized insurance product (known as Access to Basic Care) to small businesses that pay an average workforce wage of less than $15 an hour. It also would provide grants to small businesses that already provide their employees with health insurance.
No increases in income, business, or sales taxes are required by either bill. A small increase in tobacco taxes will provide the funds necessary for the ABC insurance subsidy and the grants to small businesses that provide insurance.
The insurance companies are trying to block this legislation. It is important that small business owners make their voices heard. One way you can do that is by joining the Small Business Coalition of the Pennsylvania Health Access Network. We are a statewide coalition of organizations working to ensure that all Pennsylvanians have access to affordable health care, preferably through their places of employment.