Last week, Big Insurance testified before Congress, attempting to shift the blame for skyrocketing coverage costs burdening Main Street and workers. KFF data shows average small business premiums have doubled since Obamacare passed. As a result, nearly one-third of small businesses have had to drop health coverage altogether.
It's no surprise the hearing was just another passing-the-buck exercise with no real solutions presented. Fortunately, the Trump administration and Congressional Republicans are working to undo the damage of Obamacare, reduce crushing costs, and restore affordability.
Last month, Speaker Johnson and House Republicans passed the Lower Health Care Premiums for All Americans Act. The centerpiece of this legislation is the expansion of association health plans, which are the best way to lighten the cost burden on America's 33 million small businesses and the roughly 60 million people who work for them.
AHPs allow small businesses to band together to negotiate lower rates from insurers, which their larger competitors often enjoy. Bigger risk pools mean cheaper costs, more stable premiums, and more insurer competition. AHPs free small businesses from the expensive small group or individual market, yet they can still choose Obamacare plans if they desire.
AHPs offer more flexibility and choice. Associations can design plans tailored to their members, such as restaurant workers, retailers, contractors, and farm employees. That means right-sized coverage instead of one-size-fits-all mandates, lowering costs and improving coverage.
AHPs also streamline hefty compliance costs. Associations handle enrollment, marketing, claims, plan design, and administrative functions that individual small businesses would otherwise duplicate. Centralizing those functions cuts waste and makes coverage more affordable.
Unfortunately, Obamacare essentially regulated AHPs out of existence. It forced associations to be treated as "small groups." That classification triggered strict rules, including community rating and essential health benefits, destroying their advantages.
The Lower Health Care Premiums for All Americans Act eliminates these regulations, allowing AHPs to flourish once again. The bill empowers small businesses to take control of their healthcare, clearing inflationary insurance and government bureaucrats from the exam room.
Sadly, not one Democrat voted in favor of this Main Street lifeline. But that's no surprise when you see the party is bought and paid for by health insurance industry donations. No wonder Democrats' healthcare solution is simply to direct even more taxpayer funds to insurers' bottom line. However, that doesn't excuse the media for covering this issue uncritically.
Last week, President Trump announced his "Great American Healthcare Plan," which includes many more good reforms to reduce costs, including expanded health savings accounts and increased price transparency.
These policies let businesses and employees to purchase care directly, eliminating insurance middlemen that drive up costs. They allow healthcare to function like a true marketplace, not the Soviet-style crony-cartel status quo that's failed a generation of Americans.
Sen. Majority Leader Thune should prioritize passing the House legislation and Trump's plan to overcome one of the biggest problems facing Main Street and the country. Doing so will prove Republicans are the party of affordable healthcare.
Alfredo Ortiz is CEO of Job Creators Network, author of “The Real Race Revolutionaries,” and co-host of the Main Street Matters podcast.
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