New SEMA Chairman Rick Rollins takes the podium during the Installation Banquet.

More than 500 members of the industry joined the SEMA Installation Banquet & Gala Fundraiser in Pasadena, California, August 1, to honor 2009 SEMA Hall of Fame inductees Bill Perry, Rolan “Jeep” Worthan and Henry “Smokey” Yunick, and to raise money for children's charities Childhelp and Victory Junction Gang Camp. They also came to thank members for their service to the SEMA Board of Directors, as well as welcome new members to the Board.

The event kicked off at 8:00 a.m. with the SEMA State of the Association presentation, the annual meeting open to all members to hear and discuss the association’s direction.

The doors to the Show ‘N Shine car show opened at 9:00 a.m., with Chip Foose serving as Grand Marshal and signing autographs, and an impressive collection of enthusiast sheetmetal (including a 1956 Bentley and the new, rare Alfa Romeo 8C Competizione), the car show drew 1,500 spectators throughout the day. Read more about the Show 'N Shine here.

With the car show underway, SEMA’s Street Performance Council (SPC) opened the third annual Internet Symposium, eight seminars presented by the SPC focused on harnessing the power of the Internet to help specialty-equipment businesses grow. Topics ranged from the fundamentals of online marketing, improving product data standards for better distribution, using video to promote products, and creating a savvy Internet marketing budget.

Jeep Worthan (pictured) joins Bill Perry and Smokey Yunick as 2009 SEMA Hall of Fame inductees.

As the last seminar got underway at 4:30 p.m., the Pinewood Drag Races were also winding down after running hot with racing action all day. Competitors in the Unlimited Class started their runs, following heats in the Build-It-For-Me, Stock and Modified classes. Read more about the Pinewood Drag Races here.

As the Pinewood Drag Races ramped up to its thrilling conclusion, the Installation Banquet & Gala Fundraiser evening program kicked off at 6:30 p.m. with a silent auction for more than 100 Pinewood drag race cars signed by various industry and entertainment icons.

Emcee Dave McClelland hosted the ceremonies honoring SEMA Hall of Fame inductees, and incoming and outgoing Board members. The program also featured thoughts from new Chairman Rick Rollins and SEMA Cares Committee Chairman Joel Ayres.

The fundraising for Childhelp and Victory Junction didn't stop at just the Pinewood auction and Gala. Additional donors stepped up later in the evening to take up Joel Ayres on his challenge to shave his head. By the end of the evening, Ayres, his wife Cindy, SEMA Board Member and Show 'N Shine organizer Mike Spagnola, and SEMA Vice President of Communications and Events Peter MacGillivray all ended up on the business end of hair clippers in support of the children's charities.

SEMA thanks all for their extraordinary volunteer efforts and encourages all who would like to volunteer for next year's event to contact Special Events Administrator Lisa Moreno at lisam@sema.org.

SEMA Chairman Rick Rollins (left), Immediate Past Chairman Jim Cozzie and President/CEO Chris Kersting discuss SEMA's achievements and direction at the State of the Association address.	Vendor row gave manufacturers such as PurePower an opportunity to speak directly with enthusiasts just outside of the Show 'N Shine hall.
Gigi Ho of Digital Performance led a seminar on gaining sales efficiencies by adopting industry-wide data standards, one of several seminars in the Internet Symposium.	Brian Offenberger of the Aftermarketer Club led a popular Internet Symposium session on search engine optimization.
The Show 'N Shine car show drew 155 cars and trucks, and 1,500 spectators.	Chip Foose, grand marshal of the Show 'N Shine, brought his own '56 Ford F-100 to the party.
The second-annual Pinewood Drag Races highlighted the creativity and ingenuity of industry enthusiasts and passionate kids.	Joel Ayres in Mohican mode, before it all came off.

	New SEMA Chairman Rick Rollins takes the podium during the Installation Banquet.

More than 500 members of the industry joined the SEMA Installation Banquet & Gala Fundraiser in Pasadena, California, August 1, to honor 2009 SEMA Hall of Fame inductees Bill Perry, Rolan “Jeep” Worthan and Henry “Smokey” Yunick, and to raise money for children's charities Childhelp and Victory Junction Gang Camp. They also came to thank members for their service to the SEMA Board of Directors, as well as welcome new members to the Board.

The event kicked off at 8:00 a.m. with the SEMA State of the Association presentation, the annual meeting open to all members to hear and discuss the association’s direction.

The doors to the Show ‘N Shine car show opened at 9:00 a.m., with Chip Foose serving as Grand Marshal and signing autographs, and an impressive collection of enthusiast sheetmetal (including a 1956 Bentley and the new, rare Alfa Romeo 8C Competizione), the car show drew 1,500 spectators throughout the day. Read more about the Show 'N Shine here.

With the car show underway, SEMA’s Street Performance Council (SPC) opened the third annual Internet Symposium, eight seminars presented by the SPC focused on harnessing the power of the Internet to help specialty-equipment businesses grow. Topics ranged from the fundamentals of online marketing, improving product data standards for better distribution, using video to promote products, and creating a savvy Internet marketing budget.

Jeep Worthan (pictured) joins Bill Perry and Smokey Yunick as 2009 SEMA Hall of Fame inductees.

As the last seminar got underway at 4:30 p.m., the Pinewood Drag Races were also winding down after running hot with racing action all day. Competitors in the Unlimited Class started their runs, following heats in the Build-It-For-Me, Stock and Modified classes. Read more about the Pinewood Drag Races here.

As the Pinewood Drag Races ramped up to its thrilling conclusion, the Installation Banquet & Gala Fundraiser evening program kicked off at 6:30 p.m. with a silent auction for more than 100 Pinewood drag race cars signed by various industry and entertainment icons.

Emcee Dave McClelland hosted the ceremonies honoring SEMA Hall of Fame inductees, and incoming and outgoing Board members. The program also featured thoughts from new Chairman Rick Rollins and SEMA Cares Committee Chairman Joel Ayres.

The fundraising for Childhelp and Victory Junction didn't stop at just the Pinewood auction and Gala. Additional donors stepped up later in the evening to take up Joel Ayres on his challenge to shave his head. By the end of the evening, Ayres, his wife Cindy, SEMA Board Member and Show 'N Shine organizer Mike Spagnola, and SEMA Vice President of Communications and Events Peter MacGillivray all ended up on the business end of hair clippers in support of the children's charities.

SEMA thanks all for their extraordinary volunteer efforts and encourages all who would like to volunteer for next year's event to contact Special Events Administrator Lisa Moreno at lisam@sema.org.

SEMA Chairman Rick Rollins (left), Immediate Past Chairman Jim Cozzie and President/CEO Chris Kersting discuss SEMA's achievements and direction at the State of the Association address.	Vendor row gave manufacturers such as PurePower an opportunity to speak directly with enthusiasts just outside of the Show 'N Shine hall.
Gigi Ho of Digital Performance led a seminar on gaining sales efficiencies by adopting industry-wide data standards, one of several seminars in the Internet Symposium.	Brian Offenberger of the Aftermarketer Club led a popular Internet Symposium session on search engine optimization.
The Show 'N Shine car show drew 155 cars and trucks, and 1,500 spectators.	Chip Foose, grand marshal of the Show 'N Shine, brought his own '56 Ford F-100 to the party.
The second-annual Pinewood Drag Races highlighted the creativity and ingenuity of industry enthusiasts and passionate kids.	Joel Ayres in Mohican mode, before it all came off.

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”

In a letter to President Obama, SEMA pledged its continued support in helping small businesses gain access to affordable health care. SEMA warns that the current legislation before Congress will not accomplish the mission since it ignores the structural reforms needed to reduce costs, increase competition and provide access to more choices.

President Obama identified the plight of small businesses in a recent radio address to the nation. He noted that small businesses lack the bargaining power of large companies and, when combined with higher per-person administrative costs, pay up to 18 percent more for the same health insurance plans.

“SEMA remains committed to enacting comprehensive health care reforms that will provide access to an estimated 27 million small business owners, employees and dependents who are now uninsured,” wrote Chris Kersting, SEMA’s President and CEO. “SEMA agrees with the President that the status quo is unacceptable. However, enacting legislation that does not sufficiently address the present system’s fundamental flaws could be even worse.”

SEMA contends that a prime necessity of any reform effort is to allow small businesses to pool their resources when shopping for insurance. For a number of years, SEMA members have urged lawmakers to allow formation of exchanges or similar mechanisms to provide access to a variety of competitively priced plans. Further, the association opposes a mandate that employers provide health insurance, believing it impossible to devise a “pay or play” system that will not risk catastrophic results for a number of companies.

Employer mandates could translate into business failures, a transfer of employees from private plans to a public option, or a downgrading of existing coverage to the required minimum.

The letter notes that the consumer must be engaged on decisions about health care costs and care. Mechanisms to accomplish the mission will include a mandate that individuals obtain insurance and have access to a variety of insurance options and tax incentives like health savings accounts. SEMA notes that the nation also needs to address the way care is provided, such as moving away from a “fee for service” medicine in favor of reimbursing doctors and hospitals based on results and the most cost-effective treatment.

Tort reform is also identified as a vital tool to eliminate billions of dollars of spending on unnecessary MRIs, CAT scans and other defensive medicine practices to protect doctors and hospitals from malpractice lawsuits. SEMA recommends that lawmakers set reasonable and predictable caps on non-economic losses, punitive damages and attorney contingency fees.

SEMA stresses that there must be widespread public understanding and consensus on what is contained in the health care legislation. The letter notes that the reforms must also be incremental in nature since any successful effort will encompass a huge shift in the way health care is paid for and delivered.

“Our SEMA member companies join thousands of other small businesses across America that are desperately seeking to provide their workers with access to affordable health insurance,” said Kersting. “Our industry provides the consumer with the option of purchasing high-quality products produced in a competitive marketplace. Our companies and their employees want the same option when it comes to health care coverage.”