Association Health Plans legislation passes house.

Before adjourning for the August recess, the U.S. House of Representatives passed H.R. 525, entitled the "Small Business Health Fairness Act." The bill will expand the availability of health coverage for employees of America's small businesses by allowing employers to join together through bona fide associations to buy health coverage under an Association Health Plan (AHP).

According to Secretary of Labor Elaine Chow, AHPs could save small businesses up to 25 percent on their insurance premiums. AHPs level the playing field of employer health coverage by giving participating small employers the advantages of federal law currently enjoyed by larger employers and unions. It is estimated that approximately 45 million Americans lack health insurance, and studies indicate that more than 60 percent of the uninsured either work for or are dependent on someone who works for a small business.

S. 4, which mirrors the House-passed measure, was introduced by Senate Majority Leader Bill Frist (R-TN) one day after the passage of H.R. 525. The House of Representatives has passed association health plan legislation seven times in the past nine years but the Senate has failed to act on any of these measures. However, momentum seems to be increasing. In recent months, President Bush has publicly stated that he is in favor of AHPs and the effect of their passage on small businesses. In addition, the recent changes in committee leadership in the Senate may give this bill the boost it needs to reach the Senate floor for a vote.

Let your Congressional representatives know how you would be affected by this legislation today! For more information on Association Health Plans and a sample letter of support, please visit http://www.cmaa.org/legislat/health plans.asp.