• Department of Labor Report Endorses AHPs

• Possible Tax Relief Package for Small Businesses on the Horizon

• SBA Launches New Spanish-Language Web site for Small Businesses

Department of Labor Report Endorses AHPs

The health care issue continues to receive the attention of legislators and key government officials in Washington, D.C. Just last week, the NASE was on hand as Department of Labor Secretary Elaine Chao released a new report on Association Health Plans (AHPs). The report explains how AHPs will expand Fortune-500 health benefits to the self-employed and micro-businesses.

"By banding together to leverage their purchasing power, AHPs will enable small companies to obtain health insurance on terms similar to those now enjoyed by large firms, establishing an important new way to lower costs and expand coverage," Sec. Chao said at a press conference releasing the report.

The report, "Association Health Plans: Improving Access to Affordable Quality Health Care for Small Businesses," takes the important step of addressing critics concerns of AHPs, and finds that the proposed legislation (H.R. 1774 and S. 858) protects against "cherry picking" and ensuring that AHPs will have to meet strict requirements designed to protect participants and maintain solvency.

The DOL report uses statistics from the NASE "Affordability in Health Care: Trends in American Micro-Business" survey. The NASE surveyed micro-business owners who are not NASE Members. Seventy percent of these respondents indicated they do not have or offer health insurance to eligible employees and cited cost as the main reason. But, almost eight in ten (78 percent) said they would participate in an AHP if they received group purchase price breaks. Three in four said they would be motivated to participate in such plans if they were able to have more choice in benefits, or if participation would lessen paperwork and administrative burden.

At the press conference, Sec. Chao committed the necessary DOL resources to effectively administer the AHP certification and oversight responsibilities. She said that DOL's capabilities and commitment guarantee the integrity, financial soundness and oversight of AHPs.

"Small business has long been the engine of our economic growth," Sec. Chao said. "They should not be forced to pay higher costs than large corporations for health insurance, or to choose between wage increases and important health benefits for their workers."

Senator Christopher "Kit" Bond (R-MO) and Reps. Cal Dooley (D-CA), Sam Johnson (R-TX) and Ernie Fletcher (R-KY) joined Sec. Chao. Rep. Nydia Velazquez, ranking member of the House Small Business Committee, sent statements of support for the report and AHP legislation.

Senator Bond, ranking member of the Senate Committee on Small Business and Entrepreneurship, has been pushing hard for AHPs recently, at the women entrepreneurship summit he hosted in St. Louis, and with letters to fellow Senators on the Hill.

NASE President Robert Hughes commended Sec. Chao for the study and for investigating access to affordable health care. "The report tops off the growing evidence that micro-businesses are at a huge disadvantage to big corporations when it comes to offering quality health care benefits," Hughes said.

The NASE continues to monitor the health care issue and the various bills addressing it, including AHPs and tax credits.
 

Possible Tax Relief Package for Small Businesses on the Horizon

The NASE supports new legislation by Senator Max Baucus (D-MT) who is drafting a tax relief package that will make it easier for the self-employed to purchase business equipment. Senator Baucus is drafting a package that includes an increase in Section 179 expensing for business equipment, a broadband Internet tax credit and relief for farmers. Business equipment is essential to the start up and continued efficiency and success of a small business.

Senator Baucus, Chair of the Senate Finance Committee, is planning to incorporate two bills into the tax package legislation. S. 2119 would crack down on tax shelters, while S. 2498 would prevent businesses from moving their company headquarters abroad to avoid paying taxes.

The package may also be a possible vehicle for legislation sponsored by Senator Edward Kennedy that would increase the minimum wage from $5.15 per hour to $6.65 by January 1, 2004 (S. 2538), or pension legislation (S. 1992, S. 1971) expected on the Senate floor later this month.

Stay tuned to Washington Watch for more information on this important legislation.
 

SBA Launches New Spanish-language Web site for Small Businesses

The U.S. Small Business Administration recently announced the launch of its new Spanish-language Web site. The site is aimed at reaching the growing Hispanic business community and the Spanish-speaking community at large with a business tool to help current and aspiring owners start and grow their businesses successfully.

The site, www.sba.gov/espanol, responds to the needs of a segment of the U.S. population that, according to the Census 2000, has grown to become the largest ethnic minority in the country, with more than 35 million people. According to statistics gathered by a leading Spanish-language Internet provider, 78 percent of all Hispanics have access to the Internet.

"Reaching the Spanish-speaking small-business community is an important priority for the SBA," SBA Administrator Hector V. Barreto said in a press release about the new site. "Users visiting our new Web site will find information on how to start and grow a business as well as learn more about our valuable programs and services."

Minority-owned businesses account for more than 15 percent of all businesses in the United States. Of those, the largest share, 39.5 percent (or close to 6 percent of the total) are owned by Hispanics. Hispanic-owned businesses employ around two million people and contribute more that $200 billion annually to the U.S. economy.
 

Do any of these issues affect you? Do you want to be proactive in helping the micro-business community? Visit the NASE's Legislative Action Center and “Tell Your Small Business Story.” This will help the NASE understand - on a personal level - how key legislative issues are affecting your business and your bottom line.

For more information about any of the articles in Washington Watch, contact Maureen Petron, NASE public affairs manager, at (202) 466-2100 or mpetron@nase.org.