Congress is currently considering sweeping legislation that will alter access and payment for health care. While legislation is urgently needed to control the growth of health care costs, the bills reported by Senate and House Committees to date further increase health care spending and create new taxes on employers. The Maryland Chamber of Commerce urges you to contact your Senators and Representative and urge them to oppose the flawed health care proposals in their current form.
The Maryland Chamber supports health care reforms that would control costs, expand coverage and improve quality care. Health care reform legislation can accomplish these goals by including measures to address medical liability reform, reduce unnecessary medical tests and procedures, enhance wellness programs and preventive medicine, and require individuals to purchase health insurance.
Unfortunately, the proposals under consideration include all of the usual job-killing employer mandates that you have seen in recent state legislation – and more, including: pay or play, payroll taxes on employers, minimum employer subsidy levels for coverage, “free-rider” penalties, increased grounds for lawsuits against health care providers and employers for adverse plan decisions, and a “public plan” option that will shift costs to private plans.
Of the new proposals, the most contentious issues are:
- Creation of a "public plan."
A government-run plan would be an unfair competitor, with the government acting as both the team owner and the referee. Government programs shift costs to the private sector. The Lewin Group estimates 130 million people would move from private to public insurance - this would be a disaster. It's a very short step to putting all Americans in a single-payer system.
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Employer mandate.
Punishing employers who cannot afford health insurance to provide coverage, including requirements to pay or play, is not the answer. Employer mandates, by their nature limit flexibility and innovation - the cornerstones of American health care.
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Minimum coverage.
Proposing a huge Federal Employee Health Benefits Program (FEHBP)-like minimum coverage package will bankrupt employers and workers. Cadillac, gold-plated coverage like this will not appeal to the young. The minimum level of coverage should be more akin to a high-deductible health plan with coverage of preventative services.
