Chamber Member Calls on Congress for More Health Benefit Options

Small business owners need more health insurance options, U.S. Chamber member Patricia Owens told Congress on September 18. Owens, owner of FACES DaySpa in Hilton Head, South Carolina, testified on behalf of the Chamber during a hearing on health reform before the House Energy and Commerce’s Health Subcommittee.

Five years ago, Owens began offering a traditional PPO health care plan to full-time employees. Owens paid $200 of the premium; her employees were responsible for the balance. However, Owens told the subcommittee, the PPO was not well received by her employees. Older employees in particular rejected the plan because their premiums were more expensive than those of younger employees.

Facing soaring annual increases and low employee participation—only six of her 23 employees participated in the PPO plan—Owens switched to a high deductable insurance plan matched with a Health Savings Accounts (HSA). Under this plan, Owens pays less per employee and is able to offer the plan to employees working 30-hour weeks. The result has been greater employee participation.

“Before the HSA, I found myself only available to offer my employees a ‘one size fits all’ policy that was really not affordable or attractive to them or me. With an HSA, my employees have a comprehensive, high deductible health insurance policy, and I am able to pay 50% of their premiums,” Owens said.

Owens called on Congress to provide additional health insurance options for small businesses, These include allowing small businesses to band together across state lines to purchase insurance through trade and professional associations; tax credits for small businesses; improvements to HSAs; and amendments to the tax code to make it easier for small businesses to offer cafeteria plans and flexible spending accounts.

Read Owen’s full testimony.

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