Auto Parts Industry Presses Senate To Pass Association Health Plan Bill - aftermarketNews

Auto Parts Industry Presses Senate To Pass Association Health Plan Bill

Ten trade associations representing the entire scope of the auto parts industry, from suppliers to aftermarket, challenged the United States Senate to enact the “Small Business Health Fairness Act” (S. 406). The bill would allow small businesses to purchase affordable health care coverage through a trade association. In a show of solidarity, the 10 groups submitted a joint letter to the Senate urging immediate support for the bill, commonly referred to as "Association Health Plans” (AHPs).

WASHINGTON, D.C. — Ten trade associations representing the entire scope of the auto parts industry, from suppliers to aftermarket, challenged the United States Senate to enact the “Small Business Health Fairness Act” (S. 406). The bill would allow small businesses to purchase affordable health care coverage through a trade association. In a show of solidarity, the 10 groups submitted a joint letter to the Senate urging immediate support for the bill, commonly referred to as “Association Health Plans” (AHPs).

The associations that signed the letter are: Automotive Aftermarket Industry Association (AAIA), Automotive Engine Rebuilders Association (AERA), Automotive Parts Remanufacturers Association (APRA), Automotive Service Association (ASA), Automotive Warehouse Distributors Association (AWDA), Motor and Equipment Manufacturers Association (MEMA), Production Engine Remanufacturers Association (PERA), Specialty Equipment Market Association (SEMA), Service Station Dealers of America (SSDA) and Tire Industry Association (TIA).

These industry organizations represent manufacturers, retailers and distributors of all equipment found in light- and heavy-duty vehicles along with the products and services purchased after the original sale, including replacement parts, tires, accessories, lubricants and specialty chemicals, appearance products, collision and other service repairs as well as the tools and equipment necessary to make the repair.

“Skyrocketing health care premiums have made it difficult for our organizations’ member companies – which are predominantly small businesses – to offer quality health care coverage to their workers,” said the 10 groups in the letter. “As a result, millions of hardworking Americans and their families are joining the ranks of the uninsured. S. 406 would reduce these costs and make health insurance once again affordable.”

Corporations and trade unions are permitted to offer company health plans that are regulated by the federal government. The Federal government offers its own employees a variety of health care plans that are only subject to federal oversight. For everybody else, however, health care plans are regulated at the state level.

Given the lack of uniform state regulations, it has proven impractical for most companies and trade associations to formulate cost-effective plans that would be acceptable in all 50 states. S. 406 would allow trade associations to offer AHPs in the same manner as corporations and trade unions. It is estimated that AHPs would save the typical small-business owner 15 to 30 percent on health insurance and extend coverage to more than 8 million uninsured Americans. The U.S. House of Representatives has passed the AHP measure seven times since 1995, only to have it die in the Senate. The House will likely pass the measure again in late July.

“Our companies compete in the free market – a system that provides incentives for the best products at the lowest prices,” said the groups in the letter. “Unfortunately these businesses are not given the same opportunity when it comes time to select health care insurance. About five big insurers control 75 percent of the small group market in most states. This lack of competition has spurred double-digit rate increases that are unaffordable to many employers and workers. AHPs will create larger pools of employees and lower insurance risks. This will generate competition, stabilize health care costs and provide more coverage options.”

The auto parts industry trade associations stand ready to work with the Senate Health, Education, Labor, and Pensions Committee as it takes up the issue. They believe that S. 406, which has a history of strong bipartisan support, can form the basis for creating more competition and choice in health insurance markets.

_______________________________________

Click here to view the rest of today’s headlines.

You May Also Like

SEMA Urges Members to Support Tax Relief Bill

The Tax Relief for American Families and Workers Act of 2024 benefits specialty automotive aftermarket businesses, according to SEMA.

SEMA Action Network

SEMA is encouraging its members to reach out to their representatives and ask for their support on H.R. 7024, the Tax Relief for American Families and Workers Act of 2024. The bill, which The U.S. House of Representatives is expected to vote on this week, benefits specialty automotive aftermarket businesses, according to SEMA, by allowing for the immediate expensing of R&D and investments in equipment and increasing the small business expensing cap by nearly 30%.

ASA Endorses Bipartisan Tax Framework

The Automotive Service Association says the legislation is beneficial for independent automotive repair businesses.

Industry Partners Urge Congress to Pass R&D Deductibility Fix

“Congress must restore this tax provision to enhance U.S. competitiveness, job creation and innovation as soon as possible,” said Ann Wilson, MEMA’s executive vice president of government affairs.

Legislators Challenge Vehicle Data Access ‘Double Standard’

Rep. Marie Gluesenkamp Pérez joined other legislators in sending a letter to NHTSA about proposed guidance for implementing the Massachusetts Right to Repair law.

House Passes Bill to Stop EPA Emissions Mandate

The U.S. House passed the “Choice in Automobile Retail Sales (CARS) Act” (H.R. 4468) with bipartisan support.

Opposition Grows for California’s Mandate Banning New Gas-Powered Vehicle Sales

Other Posts

U.S. House Schedules Vote to Stop EPA Emissions Mandate

The SEMA-supported bill would prohibit the EPA from finalizing federal emissions standards for light- and medium-duty motor vehicles model years ’27 to ’32.

emissions
Section 301 Tariffs & Circumvention: A Closer Look

There’s buzz suggesting that these tariffs are likely here to stay, possibly with even steeper charges on specific items.

Maine Voters Overwhelmingly Back Right to Repair

Over 80% of Mainers voted “yes” to ensure that they and their repair shops can access vehicle diagnostic tools and data.

AAPEX Keynote: Right to Repair Takes Center Stage

While there are headwinds, Congressional support is moving the REPAIR Act forward.

Right to Repair AAPEX