Senate Fails to Move Health Insurance Marketplace Modernization and Affordability Act

Last Thursday, by a vote of 55-43, the Senate failed to invoke cloture on S.1955, The Health Insurance Marketplace Modernization and Affordability Act of 2006, likely dooming the bill’s prospects for the remainder of this Congress. Under Senate rules, 60 votes are necessary to invoke cloture that limits debate allowing the legislation to proceed to a vote.

NAMIC strongly supports this legislation sponsored by Sen. Mike Enzi, R-Wyo. With only five votes short of a three-fifths majority, the bill's supporters are encouraged that the legislation progressed to this extent, as this was the first time the bill has reached the floor.

The legislation would have allowed trade and professional associations, such as NAMIC, to independently pool their members across state lines, gaining bargaining power that the government, big business, and unions currently enjoy when negotiating with insurers for health care prices. The bill would have also established lower-cost options for small business as well as more uniform regulation, which NAMIC believes will create a more attractive environment for insurance carriers to offer health insurance products.

The cost and availability of health insurance is a top issue for America’s small-business owners. More than 27 million of the uninsured across America are small-business owners, employees, or dependents of small businesses with less than 100 employees. They also account for the largest segment of the uninsured population. Small Business Health Plans could save small businesses an estimated 15 percent to 30 percent compared with the cost of purchasing coverage directly from an insurance company. SBHPs could also help many small-business employers who are now struggling to offer coverage to increase health benefits and/or pay a higher share of workers' premiums.

While the fight for small business association health plans may be finished for this Congress, NAMIC will continue to fight for legislation that allows small business to offer affordable health insurance to their employees.

Direct questions to NAMIC Senior Director of Federal Affairs Justin Roth.

Posted: Monday, May 15, 2006 12:00:00 AM. Modified: Monday, May 15, 2006 10:12:58 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.