Associations Health Plans: NOPA's Big Push for Small Businesses

the buzzword in the office products industry is "Healthcare." Most conversations NOPA had with its members in 2004 somehow reverted back to the issue of rising costs in health insurance. It was not uncommon to find healthcare premiums increase as much as 20 or even 40 percent from the previous year.

Something needs to be done to stop the bleeding and help small businesses keep healthcare expenses within reason and stay competitive in their local markets. Association Health Plan (AHP) legislation is the answer.

AHP legislation would allow small businesses around the country to pool their resources together and use that buying power to lower the cost of health insurance for all members in the association. AHPs would not only offer small employers greater bargaining power, but also economies of scale and administrative efficiencies that would reduce the total cost of healthcare even more.

Large corporations and unions already have this capability. Regardless of what state its offices are located within, large corporations are allowed to use the total number of employees across the company as its healthcare pool.

According to the Congressional Budget Office, if small businesses could obtain insurance through AHPs they would experience premium reductions of 13 percent on average and up to 25 percent. This translates into reductions of anywhere from $1,000 to more than $1,900 for the average family health plan offered by a small business.

NOPA has worked tirelessly for years to push AHP legislation through Congress. Despite AHP legislation passing the House of Representatives, the Senate has continuously blocked any attempt to pass similar legislation.

Being an election year, little got done in 2004 on Capitol Hill. Despite a virtual stand still in Washington, the Bush Administration has repeatedly supported the AHP initiative.

Most recently, during the second Presidential debate, President Bush offered three ways to reduce the cost of healthcare in America. For his second reason he responded, "Allow small businesses to pool together so they can share risk and buy insurance at the same discounts big businesses get to do."

This is exactly what NOPA intends to do in 2005.

"Now that the election is over, 2005 should prove to be a more productive year on Capitol Hill and with your help, there is a good chance AHP legislation will get through the Senate," said Paul Miller, director of Government Affairs with NOPA. "The best way to ensure AHP legislation passes is to make contact with your members of Congress and explain the impact the rising cost of healthcare has on your business."

NOPA has made getting in touch with your elected officials as easy as a flight to Washington or a click of a button on your computer.

Each spring NOPA hosts its Legislative and Procurement Conference in Washington, D.C. (this year March 15-17). At the conference attendees will be escorted to Capitol Hill for a personal, one-on-one meeting with their Congressional officials, giving them the opportunity to discuss whatever issues are relevant. If you are unable to attend the annual Legislative Conference, NOPA also offers its online Capitol Wiz program (www.capwiz.com/iopfda/home), which gives members access to easy-to-use template letters on a variety of topics that can be e-mailed directly to members of Congress.

Getting involved in the legislative process is the best way to get AHP legislation passed in the 109th Congress. NOPA already has the infrastructure in place to move quickly on setting up an AHP once the legislation passes. The only lhing standing between the status quo and cheaper healthcare premiums provided by the NOPAAHP is your commitment to making it happen. We look forward to hearing from you and thank you for your continued support.