Healthcare and small businesses

Thousands of people in Missouri and in the nation go to work every day for small businesses. Unfortunately, too many go without the protection of health insurance. Across the country, evidence shows that small businesses offer healthcare coverage less often than big businesses. In fact, only 59 out of every 100 small businesses offered employer-sponsored healthcare coverage in 2005. Almost every large business did.

So, why the disparity? Don't small business owners know the effects that going without health insurance can have on their employees? No health insurance means if you're diabetic, pregnant, or a victim of a car accident you will probably receive a lower level of healthcare and, sometimes, you'll face a greater risk of death. Don't small business owners know that offering healthcare can lead to improved ability to recruit and retain employees as well as increased employee morale and decreased absenteeism? It would be in their best interest to cover their employees.

Well, the fact is that an owner of a small business who wants to buy healthcare coverage for his employees faces serious disadvantages that lead to prohibitive, and too often unaffordable, costs. A small business can't leverage the bargaining power or benefit from the lower administrative costs and decreased risk that big businesses like Ford or General Motors can. A seemingly simple solution would be for small businesses to combine their resources and purchase insurance together. Then, with a larger pool of employees, they could compete with big businesses. Unfortunately, that simple solution faces a few roadblocks. First, state law prohibits small businesses from banding together for the sole purpose of purchasing health insurance. Second, restrictions on rates make it so that insurance companies are unlikely to offer insurance plans to already existent associations (like the Missouri Funeral Directors Association or the Missouri State Florists Association). So, even though a solution seems readily apparent, the hands of small businessmen and businesswomen are tied. This session, a bill was filed in the Senate that would change all that. Senate Bill 663 (SB 663) would remove these competition-inhibiting roadblocks. The passage of SB 663 would clear the way for small businesses to band together as small business group health plans. It would also make it easier for insurance companies to offer coverage to existing associations.

It's really a simple concept that should do a lot for small businesses and for the uninsured who need health coverage so badly. It should level the playing field between large and small businesses and provide small businesses similar accessibility, affordability and choice that big businesses have. Small businesses that join together in these health alliances will likely experience significant decreases in administration costs. Lower costs could attract more small businesses to join the group health plans, resulting in increased competition and lower costs. Small businesses that offer healthcare coverage could then have the benefits of a healthier and more productive workforce, and employees could feel confidence knowing they will have access to quality, affordable healthcare. If you or someone you know owns or works for someone who owns a small business, please feel free to contact me for more information. Better yet, spread the word. Let others know. This proposal could improve the lives of many Missourians.

Contact Rep. Barney Fisher at (573) 751-5388, send an e-mail to barney.fisher@house.mo.gov or contact him by mail at Room 408B, State Capitol Building, Jefferson City, MO 65101.