Join Christie Hardwick in a conversation about Spirited Leadership. 
Eileen Kessler writes that economic diversity can help your business grow. 
Key legislation is pending in Congress that would help small businesses form cooperatives to purchase health insurance for their employees.
Known as the Small Business Cooperative for Healthcare Options to Improve Coverage for Employees Act of 2008, or Small Business CHOICE, the bill would lessen the volatility of premiums and help small firms expand coverage for working families, say supporters.
The National Gay & Lesbian Chamber of Commerce strongly supports the bill and believes Congress should act quickly to give small business owners the tools they need to provide affordable health insurance to their employees.
"Despite creating the majority of jobs in America, many small businesses have been unable to afford health insurance for their employees," says Justin Nelson, co-founder and president of the NGLCC. "This bill would help the 47 percent of small businesses who want to offer health insurance benefits but have been unable to pay for them in the past."
The House Small Business Committee is currently considering the measure. The private, voluntary purchasing cooperatives would be established under state captive insurance laws. The bill also would provide a refundable tax credit of 65 percent to small employers who purchase health insurance for their employees through a cooperative.
The U.S. Senate has also introduced a similar bill aimed at easing health insurance costs. The Small Business Health Options Program Act, or SHOP, would allow small businesses to form purchasing pools for health insurance in addition to providing tax credits to employers.
Both bills share the same goal but take different approaches. SHOP pools a cooperative's collective purchasing power to pay for premiums, while CHOICE spreads the expense of high-cost claims among all members of the cooperative when an individual's care exceeds the plan's maximum benefit.
Rep. Nydia M. Velázquez, D-N.Y., who chairs the House committee, and Rep. Joe Pitts, R-Pa., sponsored the bipartisan bill. Along with the NGLCC, small business organizations across the country are supporting the Small Business CHOICE legislation.
"By giving entrepreneurs viable health care options, we are not just helping their businesses succeed. We are bringing coverage to the tens of millions of Americans who contribute to our economy, but find health insurance out of reach," says Velázquez.
Over the course of the past year, Velázquez notes, health care costs have risen by nearly 15 percent. The number of companies offering coverage, meanwhile, has dropped by more than 25 percent.
"Small businesses employ millions of Americans and are principal drivers of economic growth, but they also face a health care system with astronomical prices and little flexibility," says Velázquez. "The Small Business CHOICE Act would keep small firms from having to choose between providing health coverage to their employees and keeping their doors open."
