Here are some questions and answers about legislative proposals for small-employer health insurance:
Several bills have been introduced regarding health insurance for small businesses. Answers to these questions are based on S1872 and HR3626, bills sponsored by Sen. Lloyd Bentsen (D-Texas) and Rep. Dan Rostenkowski (D-Ill.), respectively. President Bush supports many of the proposals in both bills.
Q-Which Americans don`t have health insurance?
A-More than half of the 37 million uninsured Americans work for small businesses or are in families where one parent works for a small business.
Q-Why don`t more small businesses have insurance for their employees?
A-Because employees at small firms are not a member of a large group, which allows risks to be spread more, and costs lowered. Insurance companies also have denied coverage to firms with employees with known health problems. Q-When would the new rules take effect?
A-Jan. 1, 1994, except in states where legislatures meet only every two years, which would be given more time.
Q-What if I have a pre-existing health problem?
A-Insurers could not deny coverage due to pre-existing health conditions. Q-Who would be covered?
A-Businesses with 2 to 50 employees.
Q-How much could premiums rise?
A-Annual increases in premiums for small-employer health plans would be limited to no more than 5 percentage points more than the increase in premiums for the least-expensive health-care policy for small businesses. For example, if premiums for the least-expensive plan were raised 6 percent, the maximum increase allowed for others would be 11 percent.
