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Healthcare Reform Must Address Small Business' Priorities

This week, the Senate Finance Committee continued working on its healthcare reform bill, known as "America's Healthy Futures Act of 2009." Our efforts out front and behind the scenes have one goal—to ensure that reform proposals address small business’ priorities, including:
  • Interstate sale of insurance plans: Today, small employers are captives to state rules that limit choice, competition and affordability. We need standardized benefit plans that are available across state lines if we’re to create both new choices and a more level playing field.
  • Exchanges to simplify the purchase of insurance: Small businesses have long sought an easier way to shop for insurance, and exchanges are an approach that eases administrative burdens, increases choices and lowers costs.
  • Insurance market reforms to increase premium predictability: Changes to the individual and small group markets are essential to any successful reform effort. We support reforms that both ensure affordability and recognize the role of individuals who voluntarily take steps to improve their own health.
Everyone on Capitol Hill agrees that America's entrepreneurs are being strangled by the skyrocketing cost of health insurance. But there’s philosophical split on Capitol Hill when it comes to solving the crisis. For small business owners, one thing is clear: While the status quo is unacceptable, reform must improve, not worsen, the situation.
 
As the House and Senate continue their work on health reform legislation, we’re working hard to defeat proposals that will hurt small businesses, including:
  • An employer mandate: Mandates that increase the cost of doing business are bad policy any time, but especially in tough economic times. Our research confirms that this approach is inefficient and hurts both employers forced to comply with the policy, as well as employees who are hurt by job loss and lower wages.
  • A payroll tax: Payroll taxes are nothing more than a tax on job growth, because they tax labor rather than profits. A payroll tax penalty will further depress job creation.
  • A public option: A reformed, private insurance marketplace can provide businesses and employees with more affordable coverage, but that won't be accomplished if any plan includes a public option. A public option would further compromise the viability of private insurance and eventually would restrict choice to a single plan: the government-run plan.
 
As bad as these ideas are, we expect them at least two of them—the employer mandate and the public option—to be voted on when the full Senate considers healthcare reform legislation later this month. Please take a moment to make your voice heard and call on your senators and representatives to publicly oppose all of these approaches to reform.
 
And remember, you can follow the latest news and information about the debates here.