The Kansas economy is built on thousands of small businesses, whether it’s the farm implements store, the local pharmacy or the downtown coffee shop. Their employees are the back bone of our communities upon whom we all rely.

But one nagging problem for virtually every small business owner is the high cost of providing health insurance. In Kansas, only about 41 percent of small businesses with 50 or fewer employees offer health insurance coverage to their employees. Expensive premiums can hurt the overall health of the company, often threatening its very survival.

Without such coverage, however, employees are vulnerable to huge health care debts of their own, and it’s harder for employers to attract good workers. I’ve literally heard from hundreds of Kansas entrepreneurs and local Chamber of Commerce members over the years who say they are forced to choose between staying in business or providing the health care their hardworking employees deserve.

That’s why I am pleased to report that the Senate recently took a major step forward to help small businesses. The health committee on which I serve has approved legislation to allow small businesses to pool together and purchase insurance through an association to share the ever rising cost of health insurance for their employees. By pooling together, small businesses will enjoy the same health care buying power that larger companies like Microsoft or Ford have long enjoyed.

This legislation is the product of years of very difficult negotiations between the small business community, health insurers and the state regulators. Together they have found a solution in the creation of Small Business Health Plans (SBHPs), which will give small businesses an affordable choice for health care.

The SBHPs will be regulated by the states and must purchase their insurance through the regular insurance market. They may offer coverage that varies from state benefit mandates, but must also offer an alternative plan that offers comprehensive coverage. This will give Kansas consumers a choice in choosing a health plan that best fits their needs.

According to an independent study commissioned by the National Small Business Administration, this legislation could reduce premiums for SBHPs by 12 percent, translating into almost $1,000 per employee.

This is legislation that will make a real difference, not just in the bottom line, but for the well-being of many Kansans. As a champion for this proposal, I am committed to seeing the process move forward in the Senate and ultimately to the president’s desk. It’s the kind of commonsense proposal that Kansas small businesses and their employees deserve.