Gingrey Opening Statement at E&C Hearing on Small Businesses and Health Care

Washington, Oct 20 - Congressman Phil Gingrey (R-GA) delivered the following opening statement today at the House Energy and Commerce Subcommittee on Oversight and Investigations hearing on ""The High Cost of Small Business Health Insurance: Limited Options, Limited Coverage"." Congressman Gingrey served as Ranking Member for the hearing.

Gingrey's statement is as follows:

"Our economy owes most of its success to the people who will testify before this committee today - Americans who work in a small business. Their prominent place in the American economy makes this hearing today an important one.

"Small businesses create jobs and wealth. Surveys have shown that companies with as few as 20 employees are often responsible for a quarter of the country's job growth, and in recent years the vast majority of U.S. firms had fewer than 50 employees. First and foremost, Congress must enact policies that help these businesses grow and promote job creation.

"As we continue to review potential reforms for the health care system, we must also find a way to enact new policies and regulations that will help small business owners provide their employees with quality, affordable health care. Since 1999 the average annual cost of a family premium for employer-sponsored health coverage in a small firm has increased over 120%.

"The three small business owners today will testify to a system that offers small businesses few options and increasing costs. They will all testify to the basic problem facing small business owners - with fewer employees, one illness can make health care unaffordable for all.

"Bruce Hetrick will testify that his wife's cancer treatment resulted in $300,000 in health care costs. When it came time to renew his policy, the premium was scheduled to increase nearly thirty percent. His wife passed away a month before the new premium took effect. When the insurance company learned of this, they changed the premium increase to 10% -- a particularly cold comfort. Mr. Hetrick, I wish to convey my condolences for you loss and thank you for your courage in testifying today.

"Fred Walker's business was hit hard by the economic turmoil of the past two years--so much so that in February of this year, he had decided to discontinue his company's health care plan. He then learned that an employee had been diagnosed with breast cancer. For Mr. Walker, the choice was easy - he decided to continue the employee health care plan but saw a 14% increase in his premiums last year. Today, he worries that the next premium increase will be much more substantial and unsustainable. Mr. Walker, I thank you for taking care of your employees and for appearing before this Committee today.

"Michael Landauer has been operating Bi-State Muffler and Brake. For 30 years, he has been able to offer his employees health care, but today those costs are spiraling out of control. Over the last two years alone, his deductibles have quadrupled. Mr. Landauer plans to remove himself from his own plan next year because his own health care costs are driving up the premiums for his employees. Mr. Landauer, thank you for testifying before this committee.

"I note that the title of this hearing is "The high cost of small business health insurance: limited options, limited coverage." It is a sad truth - small business owners have few options when it comes to purchasing health insurance.

"Congress has an opportunity to enact reforms that address these skyrocketing costs. However, I recognize that there are ideological differences amongst this body regarding how we provide small business owners with more affordable health care options. To be frank, we do them - and millions just like them - a disservice by insisting that the path to reform is singular.

"This Congress should consider high risk pools that can be designed to offer those with chronic illnesses affordable coverage without requiring their coworkers or employees to pay more for their own coverage. We should also give small business owners the ability to choose the coverage they want free of mandates for care that require them to purchase services they don't want or need. These are but two examples of the many ideas that Republicans want to share with our President and Democratic colleagues - if they would only take the time to listen.

"I thank the witnesses again for appearing before this Committee today. Thank you, Chairman Stupak. I yield the balance of my time."

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