Washington, D.C. - U.S. Rep. Tim Johnson said today that House approval of the Small Business Health Fairness Act should pave the way for millions of Americans to obtain health insurance.

            "If enacted, this bill would allow the owners of small businesses to enjoy the same economies of scale that big businesses enjoy in obtaining health coverage at affordable prices for their employees," Rep. Johnson said.

            The Act, which Rep. Johnson cosponsored, enables the creation of association health plans, allowing small businesses to band together through trade or professional organizations to purchase health insurance for their employees. The measure passed Tuesday on a vote of 263-165 but still requires action by the Senate, which has yet to consider the legislation.

          The Act has been endorsed by the White House, the Labor Department and a broad coalition of 180 groups, including the U.S. Chamber of Commerce, the National Federation of Independent Business, the American Farm Bureau Federation and the National Black Chamber of Commerce.

          The measure enables the creation of group health plans that offer fully insured and/or self-insured medical benefits. Such plans must be certified by the Labor Department and operated by a board of trustees with complete fiscal control of all operations. A self-insured plan must have at least 1,000 participants and beneficiaries.

          Among other provisions, the bill prohibits plans from charging higher rates for sicker individuals or groups within the plan, in accordance with relevant state law.

          "This is a crucial piece of legislation that would open the door to health coverage to potentially millions of people," Rep. Johnson said. "This legislation strikes at the heart of the health care problem by addressing both access and cost, giving uninsured working families new hope for a solution that has eluded them through no fault of their own."

          According to the U.S. Census Bureau, some 45 million Americans lack health insurance. Estimates indicate that 60 percent or more of the working uninsured work for or depend on small employers who lack the ability to provide health benefits.

          "Small employers would be on equal footing with big business, giving those small employers comparable buying power and risk levels that will enable them to leverage reasonably priced health care," Rep. Johnson said. "This is good for people, good for the economy and good for the country."

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