An Iowa small business owner says changing or eliminating some federal mandates would make employer-sponsored insurance premiums more affordable.
Marcie Strouse, a partner and consultant at Capitol Benefits Group in Des Moines, is one of eight employees at the firm. She testified yesterday before the U.S. Senate Committee on Health, Education, Labor and Pensions. “Premiums have risen more than 120% since the early 2000s, while the number of insurers offering small group plans has sharply declined,” Strouse said. “It’s no wonder that 98% of small business owners fear they will no longer be able to afford coverage in the coming years.”
Strouse said several mandates in the 2009 Affordable Care Act should be repealed. “They have unintentionally contributed to rising costs, fueled industry consolidation and reduced flexibility,” Strouse said.
Strouse said prohibiting insurance companies from varying premium within a geographic area based on factors like age or gender “inflates premiums for younger workers” and she said the Affordable Care Act has required companies to pay “for coverage or services their employees may never use.” Strouse is also a critic of the ban on yearly or lifetime insurance coverage limits for essential health care services like hospital stays, pregnancy and newborn care or prescription drugs to be repealed. “Removal of the lifetime limits has contributed to uncontrolled cost growth across the system,” Strouse said. “Eliminating or at a minimum right sizing these mandates would help bring premiums back in line with what small employers and families can afford.”
Strouse also told the Senate Committee any group of small businesses should be able to join together and offer “Association Health Plans.” Under current regulations, small businesses must be in the same industry in order to purchase coverage as a group.
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