SEMA Members Identify Surging Health Care Costs as Greatest Threat; SEMA Urges Lawmakers to Enact Small Business Health Plans Bill

WASHINGTON--April 25, 2006--The ability to provide employees with access to affordable health care coverage was the main concern for member businesses according to a survey conducted by SEMA, the Specialty Equipment Market Association. Seventy-five percent of the survey respondents indicated that soaring health care costs greatly impact their businesses. SEMA has called on the United States Senate to respond by passing S. 1955, allowing trade associations to offer small business health plans (SBHPs) to member companies and their workers.

S. 1955, the Health Insurance Marketplace Modernization and Affordability Act, would permit a trade association 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. 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. With increased bargaining power, SBHPs should reduce premiums and provide greater health insurance options.

SEMA conducted a separate health care survey last year and found that skyrocketing premiums had made it difficult for their member companies to offer health care coverage to their employees. 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.

In the just-completed survey, SEMA asked its members to identify key federal issues before the U.S. Congress and regulatory agencies, from counterfeit auto parts to regulatory reforms. "Targeting spiraling health costs as their primary concern is of immense value to SEMA as we promote solutions to this nation's health care crisis," said Stuart Gosswein, SEMA's Director of Federal Government Affairs. "It provides tangible evidence for lawmakers that their constituents want SBHPs. This is very timely since the Senate will likely vote on S. 1955 in early May."

Counterfeit auto parts garnered the second overall spot on the federal priority list survey, having the potential to greatly impact 57 percent of the respondents. SEMA has already achieved success on that front. President Bush signed HR 32, the "Stop Counterfeiting in Manufactured Goods Act" last month. The new law directs that seized counterfeit goods be destroyed along with the equipment, packaging and machinery used to produce the fake goods.

The other issues identified as legislative priorities included permanent repeal of the federal estate tax (greatly impacting 67 percent), holding lawyers and their clients accountable for filing frivolous lawsuits (67 percent), reducing regulatory burdens (43 percent), and supporting increases in Corporate Average Fuel Economy (CAFE) Standards that take consumer choice, safety and other issues into account (35 percent).

SEMA members also identified other legislative issues they want to pursue which had not been included on the survey. Two examples included revising the Endangered Species Act to better save animals and plants without unnecessarily closing off-highway vehicle access, and simplifying the titling and registration process for ultra low volume vehicle manufacturers.

SEMA represents the $32 billion specialty automotive industry. Founded in 1963, the trade association has approximately 6,500 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.