STATEMENT
of the
Honorable Nydia M. Velázquez, Chairwoman
House Committee on Small Business
“State Strategies to Expand Health Insurance Coverage: The Road to Reform”
February 26, 2008

The committee is honored to have before us today — Governor Tim Pawlenty of Minnesota and Governor Edward Rendell of Pennsylvania.  These leaders have been at the forefront of the health care debate that has implications for the entire nation. 

While I understand their approaches to reform may be very different, we hope to gain insight on how their proposals can improve health coverage for the citizens of their states. 

It is for that reason we are continuing to work with the small business community and stakeholders to identify ways that Congress can address this crisis.   While major change may be a year away, the Committee is attempting to identify consensus reforms that can either be enacted this year or as part of any health care reforms made in the future.

The Governors here today are fully aware of the obstacles that meaningful health care reform presents.  With any efforts to increase coverage that impacts our nation’s health system, it will invariably create some form of opposition. 

Governor Pawlenty and Governor Rendell are responding to the harsh reality of rising health care costs and declining coverage in their states.  This Committee is particularly interested in the steps that Minnesota and Pennsylvania are considering to ensure small firms have access to affordable health insurance coverage.  

More than a year ago, Governor Pawlenty laid out his Healthy Connections platform that has set the stage for reform in his state.  Governor Rendell is also in the midst of a major debate on comprehensive changes to the health care system in Pennsylvania.  He is now working with the legislature to advance his Prescription for Pennsylvania plan.

Both of these plans make small businesses a critical component of expanding coverage.  I believe it is becoming increasingly clear that addressing the problem of the uninsured requires a focus on encouraging small businesses to offer health insurance.  
Today’s discussion will hopefully allow the Committee to gain new perspectives on approaches to improving health care choices for small businesses.  In the past year, this Committee has examined how competition among insurers and risk are cost drivers for small businesses seeking health insurance.  These are problems that I believe can and must be addressed by changes at both the state and federal level.

While demographics and localized issues may shape the solutions that you are proposing, it is clear that you both agree that the current system needs to change. 

The matter of affordable coverage for small businesses is something that every state is facing across this nation.  Given these challenges, it comes as no surprise that six out of ten uninsured Americans—including more than 10 million children—are in households headed by self-employed workers or small business employers.

I look forward to today’s testimony and again thank you for being to be here today to discuss this important issue.