SEMA Hails Senate Action to Lower Health Insurance Costs

WASHINGTON--March 15, 2006--SEMA, the Specialty Equipment Market Association, applauded the Senate Health Committee's approval of a bill (S 1955) allowing small businesses to purchase health care coverage through a trade association. SEMA has made passage of this legislation a top legislative priority.

"We take this occasion to thank Senator Enzi for introducing legislation that would provide our member companies and their workers with a reduction in health care premiums," said Chris Kersting, SEMA's President and CEO. "Most SEMA companies are small businesses that are forced to select from health plans subject to individual state rules. We need legislation that allows small businesses to combine their purchasing power to negotiate affordable health insurance."

The Senate bill would allow trade associations to offer a variety of health packages so long as at least one plan matched the benefits offered to state employees of one of the five most populous states -- California, New York, Texas, Florida or Illinois. The plans would still be regulated at the state level but could bypass many of the regulatory hurdles that make it almost impossible to offer plans that are national in scope.

Last year the House passed HR 525 which takes a slightly different approach. It would allow trade associations to establish national plans regulated by the federal government, a privilege already enjoyed by large corporations and trade unions. The House has passed this legislation eight times over the past 10 years, most recently last July. This marks the first time the Senate has voted on the issue. Despite its preference for the House version of the bill, SEMA views Sen. Enzi's bill as an opportunity to finally move forward on this critical subject.

"This is a vital issue for our members," explained Steve McDonald, SEMA's Vice President for Government Affairs. "A recent SEMA survey of our membership confirmed soaring premiums have made it difficult for specialty automotive companies to offer health care coverage to their employees. As a result, millions of hardworking Americans and their families are joining the ranks of the uninsured."

The SEMA survey found that nearly 60% of the SEMA respondents were small companies that employed as few as 10 workers. Rising health care costs forced 20% of the respondent companies to stop providing health care coverage over the last 10 years. 31% of the companies did not provide any coverage. 28% still offered coverage and paid the entire premium. For the remaining 41%, both the workers and the company paid the premium costs.

SEMA is an active member of the Small-Business Health Plan (SBHP) Coalition, and is working with other automotive aftermarket associations, the National Federation of Independent Businesses, the National Association of Manufacturers and the Small Business Legislative Council in support of the legislation.

SEMA represents the $32 billion specialty automotive industry. Founded in 1963, the trade association has approximately 6,466 member companies. It is the authoritative source of research data, trends and market growth information for automakers and the specialty auto products industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs, crossovers and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA, 91765-3914; call 909/396-0289; or visit www.sema.org or www.enjoythedrive.com.