Congress introduces bill to lower health care costs.

U.S. House of Representatives Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-Texas) led a bipartisan group of legislators in introducing the Small Business Health Fairness Act (H.R. 525), legislation aimed at significantly expanding access to quality health care for uninsured working families across the country.

The measure would create association health plans (AHPs) that would allow small businesses to band together and purchase quality health care at a lower cost for their workers. The bill, supported by President Bush, was co-sponsored by Education & Workforce Committee Chairman John Boehner (R-Ohio), Rep. Nydia Velazquez (D-N.Y.) and Rep. Albert Wynn (D-Md.).

"This common-sense legislation puts small businesses on equal footing with large corporations and unions when it comes to providing health care to their employees," Johnson said. "If it's good enough for Fortune 500 companies and good enough for labor unions, then it should be good enough for small businesses and their employees."

The House passed the bill last year by a vote of 252-162. The Senate never voted on the legislation. The bipartisan bill would increase small businesses' bargaining power with health care providers, give them freedom from costly state-mandated benefit packages and lower their overhead costs by as much as 30%--all of which are benefits that large corporations and unions already enjoy because of their larger economies of scale. Small businesses in most states are stuck with disproportionately high costs because they have to choose from fewer than five providers; AHPs offer them new options from which to choose. By giving small businesses the opportunity to pool their resources and increase their bargaining power, AHPs will help employers reduce their health insurance costs and expand access for quality health care to uninsured working families.