10/04/2007
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Surrounded by a mob of union workers, the governor claimed his plan was "the best thing that could happen to small business." |
Scores of union workers rallied at the State Capitol Tuesday demanding that small business pay a payroll tax to pay for health care for the uninsured. The rally kicked-off a multi-city tour by Gov. Ed Rendell to pressure lawmakers to pass the insurance proposals that are part of his "Prescription for Pennsylvania" plan.
The centerpiece of the governor's plan is the "Cover All Pennsylvanians" initiative that seeks to impose a payroll tax on employers to pay for the state's uninsured. The governor and union leaders urged rank-and-file members to apply the same pressure to lawmakers that was used to win passage for the new state minimum wage. Interestingly, union workers would be exempt from the Rendell health-care proposal because their plans are governed by the same federal laws that allow the state's largest corporations to buy health insurance across state lines and at a price much lower than the average small business.
To stay informed about small-business health-care issues, contact Gwenn Dando.
During briefings held by NFIB in February, small employers raised numerous concerns about the governor's Prescription for Pennsylvania. These employers were particularly concerned about the proposed payroll tax on all employers, the administrative costs that small-business owners will be forced to pay in order to comply with the new health mandate, the cost and manner in which the plan will be administered, along with the concern that declining funding sources would result in even higher costs for small-business owners.
Eighty-five percent of NFIB members oppose a payroll tax on employers who do not provide health insurance. Under the governor's plan, employers who don't offer insurance and who are required to pay the payroll tax would receive no guarantee that they or their workers would get coverage under the state program.
NFIB/Pennsylvania State Director Kevin Shivers noted that while there currently are 750,000 uninsured Pennsylvanians, the governor's plan only provides coverage to 150,000 Pennsylvanians in the first year, and only covers 450,000 by 2012. Employers without insurance who are forced to pay the new tax would not be guaranteed coverage under the governor's plan.
"Clearly, something needs to be done to reduce the cost of health insurance and health care. But more government regulation and more taxes are not the answer," said Shivers.
He noted that lawmakers and NFIB members have raised concerns whether the plan violates federal law.
"To force a business to provide something their bottom line can't afford is bad for the economy, bad for job growth and is a violation of federal laws," Shivers continued. "Passing burdensome mandates that violate federal statutes are not going to fix the health-care crisis in Pennsylvania or anywhere in this country.
NFIB recommends lawmakers follow a multi-faceted, consumer-focused approach to improve access to affordable health insurance and allow more Pennsylvanians to purchase health insurance at prices they can afford. NFIB's approach has four specific steps:
- Tax-based incentives -- NFIB members support tax-based incentives that encourage fairness and equality for everyone purchasing health insurance. Tax credits help level the playing field with larger businesses by providing incentives for small-business owners to offer health insurance.
- Cost containment measures -- Increased transparency, improving health information technology, lawsuit abuse reform and limiting mandates are essential components to contain costs.
- Pooling -- Increasing the size of the pool will help increase bargaining power and decrease administrative costs, which will increase coverage.
- Allow insurers to offer basic health plans for employers with 50 or fewer workers. Such policies would be exempt from most state mandates. This low-cost option would allow small-business owners who don't provide coverage an initial step into the marketplace. This policy would be low-cost, yet at the same time provide a sufficient level of basic health care.
