Health Care Reform
The Issue: Health insurance costs continue to escalate, placing extensive burdens on small businesses and causing many individuals to go without health insurance. A major factor in health insurance costs for small businesses is the fact that since they normally operate in one state, the state laws and mandates that regulate their plans increase their cost of coverage. Corporations and unions that operate across state lines have their health plans governed by the federal Employee Retirement Income Security Act of 1974 (ERISA) statute. ERISA lacks many of the onerous state provisions, making federally regulated plans much less expensive. Small businesses in most states are stuck with disproportionately high costs because they also have to choose from just a few providers.
Background: Earlier this year, legislation was introduced in both the House and Senate which would allow small businesses to join together to purchase quality health care at lower costs through federally certified Association Health Plans (AHPs). The measure, the Small Business Health Fairness Act of 2005 (H.R. 525/S. 406), was sponsored by Rep. Sam Johnson (R-Texas) in the House and Sen. Olympia Snowe (R-Maine) in the Senate. Specifically, the bills would allow small businesses would be able to band together on a national level through trade associations and either purchase their health insurance from a provider or self-insure in the same way that large employers and unions currently do.
Patient advocacy groups and insurers, like Blue Cross and Blue Shield Association, oppose the legislation. These groups claim that the legislation would permit AHPs to cherry pick which individuals they would cover, leaving the high risk individuals to purchase more expensive state regulated plans. AHP opponents maintain that the federal government is not capable of adequately regulating health insurance plans, a job that should be better left to the states. While the legislation provides sufficient safeguards to prevent abuses, the opposition's strong political ties in Congress threaten to hold up passage.
AAIA endorses the legislation and participates in a broad coalition known as the Coalition Supporting Access & Choice.
Status: The House of Representatives overwhelmingly passed its version of AHP legislation on July 26, 2005 by a vote of 263-165. The vote marked the eighth time that the House has passed AHP legislation, though the measure has yet to gain Senate approval. A similar bill is pending in the Senate and has 14 cosponsors.
Action Required: AAIA encourages its members to contact their Senators urging them to cosponsor and pass S. 406, the Small Business Health Fairness Act, in order to improve health-care access and lower costs.
Click here to send a letter to Congress.
Modern cars and light trucks contain advanced technology that monitors or controls virtually every function of the vehicle including: brakes, steering, air bags, fuel delivery, ignition, lubrication, theft prevention, emission controls and in some cases, tire pressure. Car owners and independent shops must have full access to the information and tools necessary to accurately diagnose, repair, or re-program these systems. This information and equipment is necessary to ensure vehicle safety, performance, and environmental compliance. Vehicle manufacturers are making access to such vital information increasingly difficult and costly to obtain for the independent aftermarket and its customers.
Without access to critical information and tools, motorists are forced to patronize new car dealerships, which may not be convenient, accessible or otherwise desirable to the car owner. Moreover, the lack of competition and consumer choice will inevitably lead to higher repair prices. Failure to perform necessary maintenance for any reason will result in unsafe and high-polluting vehicles populating the nation's highways.
The Motor Vehicle Owners' Right to Repair Act prevents vehicle manufacturers and others from unfairly restricting access to the information and tools necessary to accurately diagnose, repair, re-program or install automotive replacement parts. The Act would require the Federal Trade Commission to promulgate and enforce regulations that ensure competition in the vehicle repair business. In addition, the bill would permit the FTC, car owners and independent repair facilities to take legal action to ensure all information and tools are available and affordable. The Right to Repair Act does not affect the dealer's right to perform any services, including warranty work and does not unconstitutionally take the manufacturer's intellectual property or require them to disclose trade secrets.
Click here to send a letter to Congress.
AAIA's Right to Repair page.
Click here to see a list of OEM Service Information Web sites.