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| Advocacy > Federal > Legislative activities > AVMA legislative agenda > Issue brief |
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| Issue brief |
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| Small Business Health Plans (SBHP) |
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| Overview: |
- The cost of healthcare for veterinarians is growing almost twice as fast (over 15% per year) as veterinarian income (8% per year).
- This escalation in the cost of health care is straining the ability of veterinary practices to offer health insurance benefits to their employees.
- The AVMA currently offers health insurance plans to its members, but is unable to offer these plans in seven states (ME, MA, NH, NJ, ND, VT, WA)
- State regulations prevent AVMA members from offering AVMA insurance plans to their employees.
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| AVMA Position: |
| The AVMA approves of legislation that will allow its insurance plans to be available in all 50 states to both association members and the employees of association members. In addition, important to the AVMA is the preservation and protection of the health insurance plans currently available to its members. |
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| Purpose of SBHP: |
- Allow trade and professional associations to use the same economy of scale as large corporations and unions in negotiating lower premiums for health care coverage.
- Remove the individual state regulations preventing associations from offering health insurance to their members' employees.
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| Why AVMA Supports this Issue: |
| Despite successfully offering its members affordable health insurance for over 48 years, the AVMA's Group Health Life Insurance Trust (GHLIT) has not been able to provide health insurance to veterinary employees. Additionally, there are seven states (ME, MA, NH, NJ, ND, VT, WA), affecting 6,380 veterinarians, in which the AVMA's GHLIT cannot provide coverage for association members. The rising cost of health care in the current system is unsustainable for veterinary practices. |
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| Known Opposition to the AVMA Position: |
| Large health insurance carriers, multiple medical specialty organizations, state health insurance commissioners, and opponents of free market reforms in the health care marketplace oppose Small Business Health Plan legislation. |
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| Current Status: |
| Free market reforms, like SBHP, that decrease government regulation of the health care marketplace are unlikely to pass in the 110th Congress. Representative Sam Johnson (R-TX) introduced H.R. 241 on 1/5/07, and the bill was referred to the House Committee on Education and Labor. |
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| For More Information: |
Please contact Dr. Mark Lutschaunig at the AVMA-GRD: (800) 321-1473, ext. 3205; mlutschaunig@avma.org.
GRD/RWN 5/1/07 |
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| Offsite resources: |
| H.R. 241 Small Business Health Fairness Act of 2007; Text, summary and status Chamber of Commerce |
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Go to the Government Action Center |
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American Veterinary Medical Association
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= AVMA/SAVMA Members Only
