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www.smallbusinessforhealthcare.org

Building Small Business Support for Healthcare Reform

Affordable HealthCare Project

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Business Experience John Arensmeyer – CEO Small Business

Majority 15 year as successful Internet entrepreneur Private sector attorney Worked for Mayor of Philadelphia and lawmakers

on Capitol Hill

Terry Gardiner – Herndon Alliance 23 years CEO/Founder – NorQuest Seafoods 5 term state legislator; Speaker of the House

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An Independent Small Business Voice is Needed

Political support of small business is critical to legislative success

New research shows small business can be an ally with reform advocates

Traditional business groups do not represent the majority of small businesses

Voter care deeply about small business and want to hear their voice on health care

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Small Business Strategy

A national network of state-based groups

Working with healthcare reform advocates to achieve comprehensive reform

Credible objective poll of small businesses to shift the debate, engage media and organize

Building an independent voice of small businesses that support healthcare reform

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SBM National Research 87% ranked health care as extremely or very

important

81% favored access to purchasing pools

63% supported a government sponsored healthcare solution

60% were in favor of mandating that all companies provide health insurance

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2007 California Survey 75% rated the availability of affordable

healthcare “Very Important” or “One of the top one or two issues we face in business today.”

80% felt that employers should pay to provide healthcare to their employees.

57% of businesses see healthcare financing as a shared responsibility among individuals, employers and government – almost 3 times as many who do not (19%).

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2007 California Survey 55% were in favor of paying into a statewide

pool that would enable their employees to obtain coverage at favorable rates – over 3 times greater than those opposed (17%).

Support proposal to require businesses to pay 7.5% of payroll in exchange for employees’ ability to purchase subsidized insurance = 47%-33% in favor.

Single Payer = 42%-40% in favor

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Herndon Alliance Research Conclusions

Small business is an extremely important and persuasive voice and issue in the healthcare debate

It is necessary to give a voice to small business

Voters want to help small business

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Give A Voice to Small Business

Voters want to hear directly from small business owners and hear how reforms will impact them

The voice needs to be one that they can connect with and believe in Multi generational blue collar businesses seem to

have strong support. Examples include: Auto repair shop Third generation neighborhood hardware store

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Voters Want to Help

Voters: Are concerned about impact of health care reform

on small business. Support discounts and sliding scales to help small

businesses afford coverage. Want to hear directly from small business owners.

Even voters who don’t own small businesses are strong advocates for small businesses and worry about their costs.

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Business Owner Profile

Optimist with a DREAM

The DREAM - successful business and happy employees

Good employees are crucial – like family

The dream is being undermined Victims of the healthcare cost spiral

Tired of being blamed in healthcare debate

Frustrated that nothing has been done

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Main St. to Hi-Tech to Startup = Diversity Professional firms – high pay & skilled

Main Street retailers – competing with the big boys and globalization

Small manufacturers

High-tech, bio-tech and knowledge workers

Freelancers, consultants and contractors

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Small Business = Backbone of the Economy 26.7 million small businesses

52% of the private sector workforce (vs. 8% union membership)

75% of all net new jobs

14 times more patents per employee than big businesses

Central to American global competitiveness

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The Bottom Line

58% of small business employees do not have health insurance.

55% of businesses with under 10 employees cannot afford to offer health insurance

The health insurance they do buy costs 18% more than big business.

Small businesses pay twice as much in taxes and regulatory costs

Entrepreneurs struggle to obtain needed capital

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Business Attitudes Generally oppose government mandates and

requirements -- though there are signs that this may be changing

Generally oppose new business taxes – though rising deficits may be changing this

Generally support incentives for business to provide health care benefits

Generally support government-sponsored healthcare pooling solutions

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Business Fears = Barriers

Higher taxes

Loss of control of their business

Loss of ability to recruit and retain employees

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Fragmentation of Small Business Voices Traditional national organizations

NFIB, Chamber, NSBA

Industry groups Farm bureau, mining, restaurants, franchisees

Leadership policy groups Business Roundtable Committee for Economic Development (CED) National Coalition on Health Care (NCHC)

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Fragmentation of Small Business Voices “New” national health care reform groups

Better Health Care Together Divided We Fail (NFIB and Business Roundtable are members)

State groups supporting healthcare reform California

Small Business California California Business Roundtable (Safeway)

BALCONY (New York) Oregon

Small Business for Responsible Leadership Oregon Business Association

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Our Principles Guaranteed coverage for all

Affordability for businesses and individuals

No discrimination based on health risk or type/size of business

Shared, equitable responsibility by all stakeholders

Cost reduction within the entire system

Improved, measurable quality

Portability of a base level of quality affordable care from job to job

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Reform Policies Benefit Small BusinessExamples:

Shared Responsibility

Government Insurance Option/Purchasing Pools

Elimination of Discrimination (“Guaranteed Issue” and “Community Rating”)

Controlling healthcare costs

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Effective Language

“Businesses are not used to working with social justice advocates.”

Herndon Alliance Survey

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Effective Language Talk in plain language – not “policy speak”

Play to business pride

Acknowledge business role as source of employment for the community

Speak in "business" language - not "nonprofit" language

Never use "lefty speak”

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Effective Communication

Peer to Peer

Trusted and credible relationships

Business frame and context

Business language

One on One

Existing business hierarchy is not the path

Meeting on their turf is important

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Respectful Approach Small Business is a victim, too.

Business tries and wants to do the right thing.

Employees are like extended family.

Owners are very short on time and busy -- no time for long speeches and meetings.

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Messages that Resonate

Reduced employer health care costs Repeatedly emphasized as the essential message to

enter the conversation and get business attention

Business competitiveness is being undermined by our current system, and healthcare reform can help reestablish competitiveness

A healthier workforce has business benefits

Responsibility to employees

We understand business needs

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Messages that DO NOT Resonate

Moral issues such as “It is the right thing to do.”

“Health Care is a Right.” – Justice arguments are not effective

Government run health care messages

“We need to help the uninsured and the poor that cannot afford health care.” does not engage

Universal Health Care – this is not a winning message. Guaranteed Affordable Choice works better.

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Small Business Narrative

Backbone and engine of the US economy:

The ability to start a business is a cherished freedom

Skyrocketing health care costs have made it increasingly difficult for small businesses to survive

We need a health care system that guarantees access to quality affordable health care so that small businesses can continue to thrive and propel our economy, job growth and innovation.

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The Value of Research

Critical component early in the campaign

Counteracts prevailing view & changes the debate

Offsets early lack of members

Key to credibility

Drives media coverage

Drives small business recruiting

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Building Membership Through Partnerships Seek out non-traditional business groups.

Examples:

AARP – many members own a business

Women’s groups – Women “get” health care issues

Public and Farmers Markets

Consultants, Freelancers and self-employed

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Checklist for Building a Small Business Voice Develop principles that business can identify

with

Recruit peer to peer in non-traditional business groups

Use a business survey to shift the debate

Partner with other business groups

Work with the advocacy community

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SBM-HA Assistance for States Sharing best practices & offering advice

Providing tools based on state experiences

Sharing research results – national and state

Providing national legislative information Example: New small business “SHOP” legislation authored

by Durbin. Lincoln, Snowe & Coleman Example: Planned Senate Finance Committee hearings on

health care reform

Providing national infrastructure for advocacy

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www.smallbusinessforhealthcare.org

Affordable HealthCare Project

Conclusion