February 11, 2003

NRA Applauds House Efforts to Make Health Care More Accessible

(Washington, DC) Underscoring the need for increased access to affordable health care for small businesses and their employees, the National Restaurant Association today endorsed the Small Business Health Fairness Act of 2003 along with members of Congress and Secretary of Labor Elaine Chao during a press conference on Capitol Hill. This bipartisan legislation, sponsored by Reps. Ernest Fletcher (R-KY), Cal Dooley (D-CA), Sam Johnson (R-TX), Nydia Velasquez (D-NY) and others would make quality health care more affordable for restaurant owners and their employees through the creation of Association Health Plans (AHPs). "Association Health Plans make sense for small business owners and their employees," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "We strongly support the creation of AHPs as a way to put health care within reach for those lacking health insurance, and applaud these members of Congress and Secretary Chao for their efforts to help employers and employees obtain affordable, quality health insurance. We are also gratified to know the Senate will follow the House's lead on AHPs and introduce companion legislation in the coming days." AHPs enable small businesses and their employees to have the same opportunities as those employed by large businesses and unions: affordable health care through economies of scale, greater bargaining power, regulatory uniformity and flexibility in health benefit design. By removing barriers to affordable coverage, this legislation will also greatly increase competition in health insurance markets, with substantial benefits to consumers. Association member Lynn Martins, owner of Seibel's Family Restaurant in Burtonsville, Maryland joined the Secretary and members of Congress at the press conference and explained why she supports efforts to put health care within reach for more small businesses and their employees. "Currently I can only afford to pay the insurance for 10 of my 65 employees. Over the last three years, my premiums have gone up 60%. This is simply not acceptable," said Martins. "I want to provide insurance for all my employees, but the cost makes it impossible. AHPs will allow small businesses to increase their purchasing power and will put health insurance within reach for more restaurants around the country." Anderson said restaurants are deeply affected by the rising cost of health insurance. Each of the last two years' premiums have gone up by an average of 23 percent for tableservice restaurants alone. Unless the increased health care costs are curbed, many employers might be forced to eliminate health benefits for their employees. The restaurant industry, the largest private-sector employer in the country, is dominated by small businesses. Seventy percent of all eating-and-drinking places have annual sales of less than $500,000 and an average work force of fewer than 50 employees. In surveys, restaurateurs have routinely said that cost is the biggest hurdle to purchasing or providing health coverage. Source: National Restaurant Association