High Country Times

Health, Employment, Labor, and Pensions Subcommittee Chairman Rick Allen addressed the topic of expanding access and affordability in employer-sponsored health care during a recent hearing. In his statement, Allen acknowledged the challenges businesses face in providing competitive health care benefits.

"As the Committee of jurisdiction over employer-sponsored health care, Education and Workforce Committee members understand that employers want what is best for their employees," stated Allen. He pointed out that despite not being required to offer health coverage, many small businesses do so to attract top talent.

Allen stated that 56 percent of small employers provide health insurance, with that figure rising to 89 percent for small businesses with more than 30 employees. As a small business owner, he noted the long-term benefits of investing in employee health.

However, Allen highlighted the increasing difficulty for businesses to offer these benefits due to rising costs. "According to the Kaiser Family Foundation, premiums for family coverage for employees have increased 7 percent in each of the last two years," he noted.

He attributed cost challenges partly to the "Biden-Harris administration’s inflationary agenda" and praised efforts by "President Trump and House Republicans" to offer small businesses more flexibility. Expanding Association Health Plans (AHPs) was suggested as a solution.

Allen emphasized, "An AHP allows employers to band together to purchase health coverage," giving smaller employers the same negotiating power as larger ones. Despite Trump administration efforts to expand AHPs, the rules faced legal challenges and reversal under President Biden.

Allen pointed to the potential savings AHPs could provide, citing instances of savings up to 50 percent. He advocated for passing the Association Health Plans Act to secure the viability of AHPs for small businesses and the self-employed.

Additionally, Allen addressed the issue of reinsurance and the need to clarify that self-insured health plans with reinsurance are still self-insured. The hearing also covered telehealth expansion, direct contracts with providers, and the need to defend ERISA preemption of state insurance law.

Expressing readiness to collaborate with Democrats, Allen concluded by saying, "I am hopeful that our Democrat colleagues will work with us to give businesses more options, more flexibility, and more opportunities to offer high-quality, affordable coverage to their employees."

The hearing sought expert testimony and aimed to build bipartisan support for proposed changes in employer-sponsored health care solutions.