Contact:	Clarence Mills (202) 543-1440 c.mills@att.net
For Release:	Immediate News Bulletin PR-47 June 4, 2009

House Small Business Committee Reviews Health Care Reform

Committee, Witnesses Call for Action to Assist Small Businesses

WASHINGTON, D.C., June 4, 2009 - The U.S. House of Representatives Committee on Small Business recently held a hearing on "Common Ground: Finding Consensus on Health Reform, the Small Business Perspective." Rep. Nydia M. Velazquez, D-N.Y., chairwoman, opened the hearing by emphasizing the necessity of change in the "broken" American health care system, especially for the benefit of small businesses in the United States.

She said, "In the case of small business health care, the challenges are significant. Already, the overwhelming majority of America's uninsured are small business employees and their families ... As rates continue to climb, entrepreneurs are facing tough choices - cut health care or cut jobs. According to the National Small Business Association, 10 percent of small firms may drop coverage in the next year. That's not a decision any entrepreneur should have to make. After all, a small-business workforce is a close-knit community. Already, coverage within microfirms - those with 10 employees or fewer - has dipped to 35 percent."

Velazquez followed up these statistics with her plan of action. She and Rep. Sam Graves, R-Mo., ranking member, have introduced the Small Business CHOICE Act of 2009, which would cushion costs and give entrepreneurs better bargaining power in the health care market. Further, the committee's leadership anticipates that Congress will make significant changes in small business health care in the near future.

Witnesses at the hearing were:

• Jim Wordsworth, owner, J.R. Goodtimes Inc., McLean, Va., on behalf of the U.S. Chamber of Commerce;

• Joan M. Burkholder, owner, Crist Instrument Co. Inc., Hagerstown, Md., on behalf of the U.S. Women's Chamber of Commerce;

• Freddy Castiblanco, owner, Terraza Café, Jackson Heights, N.Y., on behalf of the Main Street Alliance;

• John Nicholson, co-owner, Company Flowers & Gifts Too!, North Arlington, Va., and

• Bradley L. Thompson II, president, Inland Press, Detroit, on behalf of the Printing Industries of America.

Wordsworth testified on behalf of the U.S. Chamber of Commerce and pointed out congressional efforts that the chamber supports and opposes in regard to health care for small businesses. Wordsworth said, "Congress is currently considering many strategies to combat rising health care costs, to bend the cost curve, to make health care more affordable and to improve its quality ... Some in Congress, however, are advocating short-sighted changes that will lead to an eventual flight of employers from sponsoring health benefits - a change that would profoundly hurt employees."

He specified that the chamber applauds such efforts as "proposals to pay for performance and not just quantity of care, to improve care coordination and explore bundling payments, reduce hospital readmissions and more." He goes on to specify changes that Congress is considering that will immediately benefit small businesses. "Among these is fair regulation of insurance companies through the creation of a national health insurance exchange ('the exchange'). By setting national rules that require health insurers to issue policies to all consumers, preventing drastic variances in the cost of coverage, putting an end to pre-existing condition restrictions, and changing insurers' incentives from avoiding risk to managing health, Congress will make health insurance much more affordable to small businesses," said Wordsworth.

Thompson, in his testimony, asked that the Small Business Committee consider some key points while reforming the U.S. health care system. Specifically, he proposed:

• Pooling - the idea of small companies pooling together to achieve greater scales of economy.

• Provide tax credits to small businesses as an incentive to provide employee health benefits.

• Increase competition and products offered in the health care marketplace.

To view testimony from the hearing, please visit ASA's legislative Web site at www.TakingTheHill.com.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.

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