Establishment of State Exchange Major Triumph for California Small Businesses and a Strong Example for the Nation
Statement by John Arensmeyer, CEO, Small Business Majority:
Governor Arnold Schwarzenegger today set in motion the most crucial component of healthcare reform for small businesses the insurance exchange which will lower small businesses healthcare costs and allow more of them and their employees to get quality healthcare coverage. The governor's signature on bills A.B. 1602 and S.B. 900 will give the state adequate time to implement the new law, so that when it takes effect in 2014 California small business owners will finally receive the myriad benefits of a strong, robust exchange.
Small businesses pay 18 percent more for healthcare than large companies yet receive fewer benefits. In our state, 60 percent of the uninsured are employed, and half of the four million workers who lack health insurance work for companies with fewer than 20 employees. An exchange will help rectify this. In California, 3.76 million small business employees and their dependents, along with 2.7 million self-employed people, will be eligible to purchase insurance through it.
This new marketplace will allow insurance companies to compete on a level playing field to sell the best quality coverage at the most favorable price. The exchange will also relieve small businesses of their current administrative burdens by offering standardized, easily comparable products, and streamlining the information and billing processes via an efficient online communications system.
California has a proud tradition of being a state of innovators and entrepreneurs. It's fitting our state spearhead the creation of a competitive marketplace that will help so many small businesses and their employees get quality, affordable health insurance, instead of waiting for the federal government to do it for us. As other states grapple with the establishment of their own exchanges, they can mimic California's model to ensure their small businesses get the same benefits Californian entrepreneurs will soon enjoy.
Small Business Majority is a California-based, national nonprofit, nonpartisan small business advocacy organization founded and run by small business owners and focused on solving the biggest problems facing small businesses today. We speak for the nearly 28 million Americans who are self-employed or own businesses of up to 100 employees. Our organization sponsors scientific research that guides us to understand and advocate on behalf of the interests of small businesses across the country.