Opinion

Legislation for small businesses

When illness or injury strike, many American families are financially devastated. Some people declare bankruptcy, and others spend many years trying to dig themselves out of huge financial holes. Many lose their jobs.

Families suffer, businesses suffer, communities suffer.

Imagine receiving a cancer diagnosis and having no idea how to pay for the treatment. Millions of workers have gone through such a terrible experience.

No doubt the problem would have received more attention in Washington if lawmakers were among those who still needed health insurance. But members of Congress have long enjoyed good health-care coverage — financed, in part, by taxpayers who don’t.

The Senate this week is considering legislation that claims to make it easier for small businesses to provide health insurance for employees. It would allow these businesses to band together to obtain coverage.

Long championed by Republican Sen. Jim Talent of Missouri, this approach appears at first glance to be something Congress should have done years ago.

But the specific proposal now under consideration has drawn fire from many organizations and people in both parties who have strong interests in expanding health coverage.

These critics include respected health groups like the American Cancer Society as well as AARP, which lobbies on behalf of people over age 50. Some governors, attorneys general and insurance commissioners also oppose the legislation.

So many red flags are waving in part because federal lawmakers want to circumvent state insurance regulations. Although some of these regulations may be flawed, many of them protect people from unethical health plans that deny badly needed care.

Many self-described conservatives in Congress portray themselves as champions of state and local authority. But these lawmakers have trouble sticking to their principles when the lobbyists come calling.

As a result, members of Congress try to grab authority from the states and then use it to dilute consumer protections. A similar episode took place this spring, for example, on state food-safety labels.

A Congressional Budget Office report indicates that proponents of the health-insurance legislation are grossly exaggerating its benefits. About a fourth of small-business employees would actually see their premiums increase.

Older and sicker people might well be left out, forcing them to fall back on state and local government assistance.

Congress should have helped small businesses get good health plans in place long ago. It would be easier if lawmakers would stop trying to undercut state efforts to protect patients and their families.

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© Copyright 2006 Knight Ridder.