Statements
Statement of H&T Subcommittee Ranking Member Janice Hahn before Subcommittee hearing on Self-Insurance and Small Businesses
Washington, DC,
November 14, 2013
STATEMENT Of the Honorable Janice Hahn, Ranking Member Committee on Small Business Subcommittee on Healthcare and Technology “Self-Insurance and Health Benefits: An Affordable Option for Small Business?” November 14, 2013 The Affordable Care Act introduced many substantial changes to health care. These reforms will improve access to and adequacy of coverage – allowing young people to stay on their parents insurance, expanding Medicaid, and not denying coverage as a result of a pre-existing condition. The small business exchanges will offer opportunities for small businesses to provide quality health insurance to their employees. At the same time, self-insurance or self-funding could be an option for small businesses to offer insurance coverage at low prices or with greater flexibility. Though this option is not for everyone, it could reduce the cost of coverage for small businesses willing to take on that challenge. While self-funding has traditionally been more common among larger employers than small ones, there is growing interest in this method of insurance. Although, it is still unclear just how many companies have already self-insured in response to the law or are planning to do so. With the opportunity to minimize risk but still offer comprehensive coverage, small entities have expressed an interest in learning more about self-insuring. Today’s hearing will allow us to learn more about how self-insurance works for small firms and what factors they must consider before deciding to move in this direction. We will also hear from witnesses about the benefits and pitfalls of self-funding for employers and what role health reform plays in these decisions. While this option holds promise for small firms, experts have indicated it could prevent much needed consumer protections from applying to workers in small entities. For that reason, we will also discuss how self-insurance could affect these companies’ hard-working employees. As we examine this very important insurance alternative, we are looking for feedback to see how it will impact small employers and how we can ensure a broad range of insurance vehicles. I thank all the witnesses for being here today and I look forward to your comments. Thank you and I yield back. #### |
