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Molly Brogan
202-552-2904
press@nsba.biz
Washington, D.C. - NSBA member and Past Chair Raymond Arth testified before the U.S. Senate Finance Committee today on the difficulties the small-business community faces in securing quality, affordable health insurance. The hearing, “47 Million & Counting: Why the Health Care Marketplace is Broken,” took a detailed look at the failures of the U.S. health care system while aiming to outline what the key tenets to any reform should be.
Arth, one of four panelists before the Committee, described the ever-increasing cost his company, Phoenix Products, Inc., has endured and will continue to endure to provide health insurance to his employees. He also outlined NSBA’s health reform proposal—a critical priority for America’s small businesses who have been responsible for creating 93.5 percent of all net new jobs since 1993.
“The small-business community’s role in creating jobs and stimulating economic growth cannot be underestimated or made merely into a talking point,” urged Arth. “Neither can the extreme time and financial drain the current health care system poses for small-business owners.”
Members of the committee agreed that the cost of health care disproportionately and unfairly harms the small-business community. Illustrating this reality is Arth, who faces, a 35 percent premium cost increase—which equates to nearly $40,000—in 2008, which Arth and his employees will have to figure out how to fund.
“My company has experienced many challenges over the years and we have been fortunate to be able to find ways to continue providing our employees with a quality insurance plan that was affordable. But now we are squeezed between our group’s demographics and explosive increases in health care costs. After 31 years we may have finally found the limit of our ability to provide this benefit to our employees,” stated Arth.
The hearing panelists and many senators in attendance outlined their suggestions for reform, which included individual responsibility, federally-defined rating rules, tax parity on health insurance, and a truly basic benefits package—all of which are key pieces of the NSBA reform proposal. The hearing fell less than a week before the Senate Finance Committee hosts the Prepare for Launch: Health Reform Summit in Washington, D.C. for members of Congress to discuss reform proposals in a bipartisan, bicameral fashion.
The hearing gathered key information from a variety of perspectives—patients, small business, insurers, and academics—that likely will set the stage for next week’s summit. Arth applauded the Committee for its work toward reforming the U.S. health care system and urged its continued vigilance on behalf of America’s small-business community.
Since 1937, NSBA has advocated on behalf of America’s entrepreneurs. Reaching more than 150,000 small businesses, NSBA is proud to be the first national small-business advocacy organization in the United States. To find out more about the importance of the small-business community, please visit NSBA’s Small Business: 70 Million Strong…And Voting campaign at www.nsba.biz/vote.
Please click here to view the full testimony.