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May 14, 2001

Nation's restaurateurs applaud House and Senate for efforts to make health care more affordable, accessible

(Washington, DC) Supporting efforts to reduce the number of uninsured individuals without government mandates, the National Restaurant Associations today endorsed the Small Business Health Fairness Act of 2001 that would make quality health care more affordable for restaurant owners and their employees through the creation of Association Health Plans (AHPs).

The bipartisan legislation, sponsored by Sen. Tim Hutchinson (R-AK) in the Senate and Reps. Ernest Fletcher (R-KY) and Cal Dooley (D-CA) in the House of Representatives, was unveiled today at a Capitol Hill press conference.

"Many restaurant owners want to provide health benefits to their employees but simply cannot afford to because of the high costs involved," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "In fact, for our industry, cost is the number one reason why individuals forgo health care. We strongly support the creation of AHPs as a way to put insurance within reach for those lacking it, and applaud these members of Congress for their efforts to help employers and employees obtain affordable health insurance. We will be ensuring that this legislation gains the attention and support of Congress."

Association member Pam Felix, owner of California Tortilla in Bethesda and Rockville, MD, joined the members of Congress at the press conference and explained why she supports efforts to put health care within reach for small business people and their employees.

"I am only able to afford insurance for 10 of my 60 employees. In order to keep them fully covered I have had to change health insurance carriers every year to keep the costs manageable," Felix said. "Obviously, I would love to be able to provide insurance for all my employees, but the cost makes it impossible. Congress should be focusing on ways to bring down the cost of insurance so more employers and employees can get coverage at an affordable rate."

The legislation would allow a trade association, such as the National Restaurant Association, to provide affordable health insurance to thousands of member restaurants nationwide through an AHP. By allowing restaurants and other businesses to join together and obtain insurance through a larger entity like an Association, they would be able to receive quality health care plans at a reduced cost.

The restaurant industry is dominated by small businesses, as seven out of 10 restaurants have fewer than 20 employees.

   

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