TRSA Endorses Association Health Plan Bill
President’s State of the Union address calls for enactment of AHPs

February 3, 2005, Alexandria, VA—Textile Rental Services Association (TRSA) President and CEO Roger Cocivera today applauded legislation introduced Wednesday in the U.S. House of Representatives—the Small Business Health Fairness Act (H.R. 525). The bill would expand the possibilities for small-business employees and others to get healthcare by making association health plans (AHPs) legal . This would allow small businesses to band together through associations such as TRSA to get better rates because of greater buying clout.

“The textile rental services industry would benefit by the passage of this legislation,” Cocivera said. “The rising cost of healthcare premiums is a problem for every employer and is especially hard on small businesses. Many textile rental companies are struggling with how to provide healthcare for their employees. TRSA staff and members have worked long and hard to get this legislation reintroduced this year, and we are pleased that Congress has taken the initiative to reintroduce it.”

Cosponsors include Education and the Workforce Committee Chairman John Boehner (R-OH), Rep. Nydia Velazquez (D-NY), Rep. Albert Wynn (D-MD) and others. Last year, the U.S. House of Representatives passed the bill 252-162, with 37 Democratic supporters.

President George W. Bush reaffirmed his support for AHP legislation during last night’s State of the Union address, saying, “To make our economy stronger and more productive, we must make healthcare more affordable, and give families greater access to good coverage—and more control over their health decisions,” Bush said. “I ask Congress to move forward on a comprehensive healthcare agenda with tax credits to help low-income workers buy insurance, improved information technology to prevent medical error and needless costs, association health plans for small businesses and their employees—expanded health savings accounts—and medical liability reform that will reduce health care costs and make sure patients have the doctors and care they need.”

Congressional observers say the House likely will pass the AHP bill again. However, the legislation has previously stalled in the Senate, and its fate there remains uncertain this early stage of the 109 th Congress. President Bush has indicated he’s eager to sign an AHP bill.

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Since 1913, TRSA members have provided textile maintenance and rental services to commercial, industrial and institutional accounts—over 90 percent of TRSA member companies are small businesses. TRSA members serve hygienically clean textile items to millions of customers in commerce, industry, and other professions. The combined textile rental industry had an estimated 2002 sales of about $10.9 billion. Linen supply and industrial laundering companies employ more than 110,000 people.