Legislation to help Arizona’s small businesses access affordable health coverage is gaining momentum. House Bill 2693, led by Rep. David Livingston, recently passed the House Commerce Committee with strong backing from the Arizona Chamber of Commerce & Industry and the Arizona Small Business Association.
This bill aims to expand Mutual Employer Welfare Arrangements (MEWAs). MEWAs let employers band together to provide health benefits, but current rules limit who can participate. With HB 2693, more small businesses can join through statewide chambers or associations, which will increase their bargaining power.
Supporters of the bill highlight a pressing issue: small businesses often struggle with rising healthcare costs and fewer options compared to larger companies. Courtney Coolidge, of the Arizona Chamber of Commerce, emphasizes that small businesses are crucial to Arizona’s economy but often face a healthcare system not designed for them. She believes this bill offers a practical solution that promotes flexibility while maintaining regulatory standards.
Livingston notes that this bill allows smaller businesses to pool together like large employers, potentially leading to lower costs due to a larger risk pool. This idea resonates with many business owners, including State Rep. Jeff Weninger, who chairs the Commerce Committee and owns restaurants. He understands firsthand the challenge of managing health coverage as costs climb every year.
So how does the bill work? MEWAs allow multiple employers to share the risks and costs of healthcare. HB 2693 aims to broaden participation by letting different industries come together under a statewide chamber or business league, giving more control over how they provide health coverage.
This approach mirrors successful models in other states, which have reportedly seen benefits like reduced premiums and more options for small employers. According to a recent survey from the National Federation of Independent Business, 67% of small business owners say healthcare costs significantly affect their growth prospects, making this legislation even more relevant.
As for what’s next, the bill still needs to pass the House Rules Committee and be reviewed by party caucuses before it can be put to a vote. If it succeeds, it will signal a major shift in how Arizona’s small businesses tackle healthcare affordability.
Business groups supporting the legislation are committed to collaborating with lawmakers as the bill progresses. This push reflects a growing awareness of the importance of making healthcare more accessible for small businesses, an essential part of Arizona’s economic landscape.
