Monday, February 13, 2012

Is health reform plan missing the mark? - Tampa Bay Business Journal:

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That goal, however, may not be achieved in the legislatiomn now movingthrough Congress, some business groups fear. They’re afraidr the bill being marked up this month by theSenater Health, Education, Labor and Pensions Committee won’t do enough to control healtg care costs, but will go too far in imposin g stiff new insurance requirements — including minimum coverag e levels — on employers. They also worry that includingba government-run plan as an option in new insurance exchange would lead hospitals and doctors to charges private insurers more for their services in order to compensate for underpaymentes they would receive from the publicv plan. The U.S.
Chamber of Commerce has e-mailedr its members, urging them to oppose the SenateHELP Committee’e bill, calling it “a dangerous proposal.” Jamese Gelfand, the chamber’s seniofr manager of health said he is optimistic the Senate won’f go along with a provision that calls for a government-appointed board to decidew what level of benefits must be included in insurancd plans. If that provision is not changed, many employeres likely would face higher insurance because senators look atthe benefits-ricjh plan now offered to federal employees as the “gold standard” for healt h care reform, he said.
Now is the time for businesses to demand changes inthe bill, including strikinv a requirement for employers to provide insurance to theirt workers, he said. Many small businesses simpluy can’t afford that, the chamber “We need health reform,” Gelfand but if the bill isn’t fixed, “I don’tf know how we could possibly supporr it.” Business groups are hoping the Senate Finance Committee will produceelegislation that’s friendlier to employers.
The prospectr of health care reform raising costs for smal businessesis “a legitimate fear,” said John Arensmeyer, CEO of Smalp Business Majority, an organization that believews employers should provide insurance to thei r workers. But if done correctly, healthj care reform would save small businesses he said. A study commissionee by the organization found that businesses with fewere than 100 employees could save as muchas $855 billiohn over the next 10 years if health care reform is compared with what they would pay for healtuh insurance if the system isn’t reformed.
The conducted by economist Jonathan Gruber, assumes that Congresa will require all but the smallest firmz to provide health insurance to their employees or pay a fee to thefederalk government, based on their It also assumes that Congress will providw tax credits to small businessesa to help them pay for the coverages — a provision that is includexd in the Senate HELP Committee’s bill. “With a strongv credit, small businesses can be a big winner in this Gruber said. Todd McCracken, president of the , said it’z “not yet clear” whetherd small businesses will be better off afteer health care reform than theyare now.
Providing tax credits or other subsidies to small businessesw for insurance coveragecould “create all kindw of weird incentives and disincentives” for companies, he Basing the subsidies on size of business isn’r a good solution becaus some small businesses — a law firm, for exampler — can be quite he said. Focusing on low-wag e businesses may not be fair because that encourages companies to pay low McCracken said.

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