March
2, 2015
The
Honorable William Lippert, Chairman
House
Health Care Committee
State
House
Montpelier,
VT 05602
RE: Impact of Health Care Bill (DRAFT NO. 1.2,
02-27-15)
Dear
Representative Lippert:
On
behalf of the members of National Federation of Independent Business in Vermont
(NFIB/VT), I’d like to make clear our opposition to the Committee’s draft
health care bill. Increasing health care
spending as the State faces a $120M budget deficit is imposing more costs on a
still fragile small business sector.
As
you know, Vermont Auditor Doug Hoffer is expected to finalize his audit of
Vermont Health Connect (VHC) this spring.
Additionally, a full reconciliation of all transactions (eligibility
determinations, subsidies, provider payments, etc.) must be conducted of the
highly flawed roll-out of VHC to ensure public monies were appropriately spent
and adjustments are made. Such adjustment risks could amount to millions of
dollars currently not budgeted. I urge
you and your committee to await the finding of the Auditor’s report and the
reconciliation of VHC roll-out transactions before taking further legislative
action.
The
outcome and consequences of continuing down the path proposed by Governor Peter
Shumlin is premature at best and irresponsible at worst.
NFIB/VT
opposes the imposition of a new Payroll Tax.
Vermont’s small businesses and their employees cannot afford another
$90M out of their pockets. NFIB/VT
continues to oppose the Employer Assessment and further increases. First, this tax was a funding mechanism for
Catamount Health, then a funding source for the operation of Vermont Health
Connect via the $256 M State Health Care Resource Fund, and last year used to “fill
the $3M budget gap”. The Employer
Assessment Tax currently raises $18M on small businesses who do not offer
health care to their employers. To make
matters worse it has been at the encouragement of the administration and the
legislature for small business owners to drop their coverage on the promise of
removing the health care burden from small businesses. Now it is being sought as a penalty.
In January, Governor Shumlin said he heard Vermonters with regard to affordability
yet he proposes more spending, new and higher taxes. His agenda strains small businesses, and
impedes growth and the ability for a business to add jobs in this high cost
state’s increasingly anti-business climate.
Without
a vibrant economy – a healthy/solvent small business sector; policymaker will
no longer be able to meet the high expectations that they continue to set for
Vermonters. These policies continue to
draw the lifeblood from those who can least afford to pay.
NFIB/VT
urges you and the Committee not to fall for the Governor’s short-sighted
proposal and table legislative action that will increase spending and require
higher taxes. We urge you to look at a
long-term solution rather than a one-year fix that Vermont small businesses cannot
afford.
Sincerely,
Shawn
Shouldice
cc:
Members
of the House Health Care Committee
Governor
Peter Shumlin
Lt. Governor Phil Scott
Senate President Pro Tempore John
Campbell
House
Speaker Shap Smith
NFIB/VT Leadership Council
Examples of Governor
Shumlin and Administration Staff
Encouraging Businesses to
Drop Health Insurance Coverage
1.
VTDIGGER Reports on Aug. 12, 2012: “The Shumlin
administration has said it would encourage small employers to drop insurance
coverage of individuals so that they can qualify for subsidies.”
2.
VPR Reports on Sept. 7, 2012: “Shumlin
says the federal law includes subsidies for people who make less than $47,000 a
year and that’s why he’s encouraging small Vermont businesses to drop their
health care coverage so their employees can purchase their insurance through
the exchange.
“The Affordable
Care Act will encourage small employers like me, business people like me to say
we’re going to help you go to the exchange subsidize, raise your wages so you
can go directly to the exchange to buy your insurance,” said Shumlin.
“We are decoupling health care from employment which is incredibly
important to job growth.”
3.
VTDigger Reports on May 14, 2013: Rep. George Till,
D-Jericho, raised the issue during debate on the floor of the House of
Representatives – “It seems like we have it backwards,” he said. “We have been
encouraging employers explicitly or implicitly to drop insurance so that their
employees can bring down federal subsidies.
On one hand we’re telling employers to drop employees,” he added, “but
then we’re turning around and saying we’re going to make you pay for the
exchange.”
