Small Employer Health Benefits Program Act of 2003

Small Employer Health Benefits Program Act of 2003 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to direct the Secretary of Labor to establish the Small Employer Health Benefits Program under which: (1) qualifying small employers are provided access to qualifying health insurance coverage for their employees; and (2) such employees may elect alternative forms of coverage offered by various health insurance issuers.

Limits such program to small employers that elect to: (1) offer health insurance coverage to each individual employed for three months or longer; and (2) pay at least half the total premium for qualifying health insurance coverage for such individual. Provides for coverage of part-time employees.

Requires the Secretary to enter into contracts with health insurance issuers for the offering of such insurance coverage.

Reduces by five percent the total premium otherwise payable by such employer if an average of fewer than 25 employees were employed during the preceding calendar year.

Requires the Secretary to provide premium subsidies (calculated according to specified formulae) to: (1) employers for coverage of employees whose individual income is at or below 200 percent of the poverty line; as well as (2) such employees.