Transcripts

Health Care Compromises Come Before Congress

SUSIE GHARIB: This is health week in the U.S. Senate. Lawmakers have scheduled votes on a number of health care proposals, including medical malpractice and women`s health care. Also on tap: a bill backed by President Bush and already passed by the House to encourage trade associations and groups of small businesses to offer health coverage to their members. As Stephanie Dhue reports, small business owners are watching it carefully.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: John Nicholson offers health insurance to the 15 employees who work at his florist shop. He pays two-thirds of the cost, employees pay the rest. Nicholson hopes to trim the nearly $20,000 a year he pays in premiums by buying coverage through a trade association. JOHN NICHOLSON, PROPRIETOR, COMPANY FLOWERS & GIFTS: We should be able to get a decline in prices because you`re going to aggregate smaller groups.

DHUE: Opponents say those lower prices will come with lower quality health coverage. Under the proposal, association health plans would be exempt from state standards of care. That`s why groups like the American Cancer Society and AARP say the bill is a step backward. They fear association plans won`t cover what are now considered basic items like mammograms, diabetic care, and colon cancer screenings.

DANIEL SMITH, VP GOVERNMENT RELATIONS, AMERICAN CANCER SOCIETY: You get what you pay for. And in this case the quality of the insurance won`t be as good because the bill actually would allow the insurance companies to basically ignore many of the guarantees of coverage that are out there that are the consumer protections that people need.

DHUE: Supporters, including the National Association of Realtors, say those current coverage mandates make insurance almost unaffordable for small businesses.

CASEY LEWIS, MEMBER, NATIONAL ASSOCIATION OF REALTORS: The insurance companies aren`t providing the kind of insurance we need for small businesses. That`s why this is in play.

DHUE: Analysts say prospects are poor for association health plans. To get a bill passed the Senate will require compromise, something in short supply this election year. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Arlington, Virginia.