AWB members and small business owners Jim Spady, Ross Irwin and Lonnie Yates pleaded with lawmakers Thursday to support a bill that would allow for the sale of insurance across state lines.
House Bill 3015 would open up the market to competition, which would in turn lower cost and increase quality, business owners told the House Health Care & Wellness Committee.
"I need more choice," said Dean Hartman, president of Capital Business Machines in Olympia. "Right now, it's a monopoly and I don't have that choice," he said, noting that it gets harder every year to continue providing health-care benefits.
Karen Evans, accounting manager at Aptech Systems, a Black Diamond-based software company, said her company has experienced significant rate increases over the last five years. Unless something changes, she worries the day will come when the company will no longer be able to afford to provide health insurance benefits.
"It's just killing us to be able to provide health insurance," Evans said. "I would really like to see, when our broker goes out to bid, that we have the option to look at other states. We do not have that option right now."
HB 3015 would authorize the state Insurance Commissioner to enter into a compact with other states to allow for the sale of health benefits across state lines. Carriers offering qualifying plans would need to comply with state laws, including those dealing with consumer protection, market conduct and unfair trade practices.
The increased competition would not only lead to lower prices, but it could also open up more choices in the type of plans available, proponents said.
The AWB-backed legislation would let Washington get out in front on the issue now that federal health- care reform has stalled, said Donna Steward, AWB government affairs director.
Even if the federal legislation had not stalled, it would still take several years to enact, said Natalie McNair-Huff of True Blue, the Tacoma-based temporary staffing services provider.
"We need to get something in place now to control costs," McNair-Huff said.
Other business representatives who testified include Don Conant, general manager of Valley Nut and Bolt in Olympia, Lonnie Yates of All Freight Solutions, Inc. of Kent, Ross Irwin, owner of Cabinets by Trivonna of Lacey and Jim Spady, vice president of Dick's Drive-Ins.
Conant said he just opened his new health insurance rate plan last month and discovered a 39 percent increase. He sat at his desk longing for the days when the increase was just 20 percent.
"Then I realized that was ridiculous," Conant said.
Irwin said he and his wife hope to hire their first employee for their cabinet business, but he worries: "How on earth am I going to be able to afford to offer insurance."
Spady, whose iconic burger business celebrated its 56th anniversary today, testified that most of the company's approximately 100 employees receive health insurance, but the cost has risen dramatically over the last five years.
"I don't see this proposal as a panacea," but he said it was a "step in the right direction."
Paul Guppy, vice president for research for the Washington Policy Center, said the center has been a long-time proponent of selling insurance across state lines.
For virtually all products, the United States is one national market, Guppy said.
"Health care is the only product I can think of that Washingtonians can't shop [for] across state lines."
Let your lawmakers know this bill is important to Washington employers -- especially small businesses. Visit our new Washington Business Votes Web site to find your legislator and send them a quick message in support of HB 3015.
