Wednesday, May 23, 2007

On Health Care for Small Business Owners

A major stumbling block to small business owners getting any relief on health insurance is that federal laws prevent small-business owners from forming multi-state employee pools for the purpose of negotiating insurance contracts.


There is a proposal before the U.S. Senate that would allow Small-Business Health Plans (AHPs). Allowing AHPs would make it possible for small business owners to negotiate group discounts through their trade associations (CRAFT) that big business and labor unions take for granted. If approved by Congress, CRAFT, alone or in concert with other associations, could seek out health insurance opportunities that would benefit members. Estimates of the savings that might be attainable have varied from 15% to 40% but it is a moot point unless the legislation is passed.

NFIB, the National Federation of Independent Businesses, is soliciting signatures to a petition in favor of passage of legislation authorizing Small-Business Health Plans. If you are interested in adding your name to the NFIB petition, please go to or call 1-800-NFIB-NOW.

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