Report Shows Small businesses lack of choice in health insur

 

Friday, Mar 27,2009, 2:01:11 PM   Click:

Copyright: Federal Information & News Dispatch, Inc.
Source: Congress of documents and publications
Wordcount: 705

[Washington DC] - Assistant Majority Leader of the Senate Dick Durbin (D-IL) and Senators Olympia Snowe J., Member of the Senate Committee on Small Business and Entrepreneurship, Christopher S. Bond (R-Mo.) and L. Blanche Lincoln (D-Ark.) today announced the release of a Government Accountability Office (GAO) report which highlighted a lack of competition in the small group health insurance market, leaving U.S. small businesses with little choice when it comes to ensuring a sense, affordable health care coverage options for their employees. The legislature requested the GAO report, which confirmed the consolidation of small group health insurance market has grown considerably. Specifically, the report reveals that the five largest carriers in the small group market, when combined, account for at least three-quarters of the market in 34 of the 39 states that responded to the survey, and they represent 90 per cent or more in 23 of those States.

"Competition is essential to make health insurance more affordable for small businesses," said Senator Durbin. "But in my state of Illinois, competition is rare - the five largest insurance companies even eighty-two percent of the market. Nationwide, the problem is more and more insurance and health is increasingly unaffordable for small business owners. I intend to join with Senators Snowe and Lincoln reintroduce legislation - The Small Business Health Options Program (SHOP) Act - which will increase competition and bring down the cost of health insurance for small companies. As uncertainty about our economic future remains, I hope that Congress will make this bill a priority in the health care reform debate. "

"Access to affordable health insurance remains a concern for small businesses in Maine and throughout the country, and this GAO report provides stark data highlighting the challenges we still face to face this crisis "said Senator Snowe." The sad truth is that small markets group insurance to a lack of real competition among insurers. No competition from higher costs and higher costs to bring any health insurance. That is why I worked with Senators Durbin, Lincoln, and others to re-introduce the Small Business Act, the Health Options, or SHOP Act. This law inject much needed competition into insurance markets wrongdoing and to provide a new range of affordable options for small businesses and freelancers. "


"It's economics 101, less competition in health insurance means less choice and higher costs," said Senator Bond. "Congress must act now to make it easier for our small businesses to provide workers and their families with health insurance."

"The majority of uninsured Americans are self-employed individuals and employees of small businesses," said Senator Lincoln. "I heard from several owners of small businesses in Arkansas, who are desperate to offer health insurance to their employees because they know that it helps in recruiting, retention, employee performance, and the overall success of the company, but they are increasingly unaffordable. Our bipartisan bill SHOP will allow us to begin to meet the needs of millions of workers whose uninsured Americans, the priority is access to quality affordable health care and their families. "

The GAO report found that:

* The median market share of largest airline group aboutme increased to 47 per cent in 2008 from 43 percent in 2005 and 33 per cent compared to 2002. Twenty-four of the 29 states of the information in 2002 and 2008 have increased the market share of the major carrier that ranged from 2 to 39 percentage points.

* The number of states with a combined market share of five largest carriers of 75 percent or more has increased since our 2002 survey. The combined market share of five largest carriers of small groups represent three-quarters or more of the market in 34 of the 39 states, compared to 26 of 34 states reported in 2005 and 19 of the 34 states reported in 2002.

* Finally, the median market share of all Blue Cross and Blue Shield carriers in 38 states reporting this information in 2008 was about 51 per cent, compared to 44 per cent in 2005 and 34 percent compared to 2002 for 34 States to provide information in each of those years.