As I was saying ...

This month, the U.S. Senate will consider the Health Insurance Marketplace Modernization and Affordability Act of 2006, which was favorably reported out of committee in March.

Never mind the bill's splendiferous title; it's something we desperately need.

The measure would allow national associations, such as NRCA, to offer health insurance programs for their members to make available to their employees. If the bill passes, associations could take advantage of the economies of scale from group buying, increasingly important as health-care costs continue to escalate. Studies have indicated the average savings to a small-business employer will be in the range of 15 percent to 20 percent.

The bill also would require associations offering these health insurance plans to comply with one set of federal regulations rather than 50 state regulations—the single biggest impediment to the ability of associations to offer group programs in the past. In fact, studies have shown there are more than 1,500 state-mandated benefits for employer-provided insurance programs; these have made it virtually impossible for national associations to attract insurance companies to offer any national health insurance programs.

Not only does the roofing industry need this legislation, but the U.S. does, as well. Small businesses (those with fewer than 50 employees) employ about one-third of the people who work in the private sector. Yet though 99 percent of companies with more than 200 employees offer health insurance to their employees, the percentage declines steadily as the size of the firm decreases; only 31 percent of workers at companies with fewer than 25 employees have health insurance, and a growing number of U.S. workers have no health insurance at all.

In addition, administrative costs for larger, self-funded employers represent only 5 percent to 10 percent of health insurance premiums; the number increases dramatically—to 25 percent to 40 percent—for smaller employers. The new bill will help drive those costs down and level the playing field.

Legislation similar to the Senate-passed measure has been passed by the House of Representatives for eight consecutive years. If the bill passes the Senate, it will go to a House-Senate conference committee, and a final version should be completed within a few months. President Bush has indicated he will sign the bill when it reaches his desk.

It's about time.

For more information, contact NRCA's Washington, D.C., office at (800) 338-5765. And let your senators know how badly we need this legislation.