Seeking Health Care Solutions

 

U.S. Chamber member Patricia Owen asked Congress to provide more affordable health insurance options for small businesses in her testimony before a House subcommittee on September 18. Owen is the owner of FACES DaySpa in Hilton Head, South Carolina.

 

Five years ago, Owen began offering a traditional PPO health care plan to her full-time employees. She paid $200 of each premium; her employees were responsible for the balance. However, Owen told the subcommittee that the PPO was not well received by her employees because of the cost.

 

Facing soaring annual increases and low employee participation in the PPO-only six of her 23 employees participated-Owen switched to a high deductible insurance plan matched with a Health Savings Account (HSA), which Congress made available in 2005. Under this plan, Owen pays 50% of her employees' premiums, which comes out to less than what she paid under the PPO. And she also offers the plan to employees working 30 hours per week. The result has been greater employee participation.

 

Owen called on Congress to improve HSAs. The Chamber is pushing for increases in the annual contribution limits and allowing HSA contributions to be used to pay for premiums. Owen also endorsed other options, including tax credits, amendments to the tax code to make it easier for small businesses to offer cafeteria plans and flexible spending accounts, and permitting small businesses to band together across state lines to purchase insurance through trade and professional associations.

 

Read Owen's full testimony at www.uschamber.com/issues/testimony/2008.