Associated Builders and Contractors
Members Testify in Both
From USAE (U.S. Association
Executive), a trade publication that covers the meetings industry.
Published on April 26, 2005. Web site: www.usaenews.com
By Ben Ledbetter
On Capitol Hill April 21, the Senate
Committee on Small Business and Entrepreneurship gave an ear to
Association Health Plans and at least one small business owner gave
his thoughts on how the health plans would be beneficial.
Doug Newman, president of Newman
Concrete Services, Inc., in Hallowell, Maine, a member of the
Associated Builders and Contractors Maine Chapter asked the senate to
support AHPs.
“Of the many challenges I have faced
as a small business owner, providing health insurance to my employees
has proven to be among the most difficult,” Newman said. “Looking
ahead, I see the crisis worsening and not much relief on the
horizon.”
In his testimony, Newman told committee
members that he pays more than 70 percent of the health care premiums
for his 50 employees, as well as half of the premium cost for his
employees' families.
The small business committee is led by
Maine Republican Senator Olympia Snowe, who is also author of the
Senate AHP bill.
Her bill would allow small businesses
to pool together through their trade associations and negotiate
health care coverage for their employees and families at possibly
lower rates.
Newman said difficult financial times
coupled with spiking health care costs have forced his company to an
“inevitable day of reckoning.”
“Health insurance premiums have
increased dramatically in the past four years,” Newman said. “In
2000, health insurance for an individual cost about $42 per week. In
2004, the same coverage cost over $70 per week for the same employee.
Family coverage was $123 per week in 2000, but by 2004, it had risen
to $211. This amounts to an increase of almost 70 percent in the last
four years.”
The Senate Committee on Health,
Education, Labor, and Pensions also held a hearing on April 21 about
the rising cost of health care and the availability of affordable
health insurance for America's workers.
ABC's Vice President of Insurance Joe
Rossman, who has managed ABC's health benefits for more than 17 years
testified about the need for AHPs.
ABC's Director of Communications Scott
Brown told USAE after the April 20 hearing that it looked like the
committee could be preparing to move the legislation forward.
“It was a very positive step forward
that the committee was holding the hearing,” Brown said. “It
shows the Senate is gearing up to move the legislation forward. We
feel very optimistic this association health plan legislation will be
passed in congress and taken up in the senate.
“It is our understanding the majority
leader wants to get this legislation up and voted on in this session.
We're very optimistic. We think today's hearing is another step
forward.”
The American Society of Association
Executives was expected to submit testimony in support of AHP
legislation for the Wednesday hearing.
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