06/19/2008
Millions for bio-tech, not one cent for small business
… unless you count the trickle-down. NFIB does not oppose government support for business, but we believe that most of the time state government's most effective support for business means getting out of the way of the free enterprise system. Last week the Massachusetts Legislature enacted by a wide margin, and the governor signed, legislation to provide $1 billion in loans and grants to the bio-tech industry. Proponents said that the state needs to compete in the modern world and this industry best leverages the state's strengths in higher education and skilled workforce. The legislation was signed prior to the convening of the biotech industry's convention in San Diego where participation by dozens of members of the governor's administration is estimated to cost $250,000.
The legislation was opposed by some legislators including most Republicans and a few Democrats in each house. Opponents characterized the bill as corporate welfare that singles out a particular industry for taxpayer-funded benefits and as state government picking winners and losers, which would open the door to conflicts of interest and charges of corruption whether real or perceived.
Upon passage of the legislation, Mass Insight reported that some of Massachusetts' more traditional industry sectors, like communication, IT and defense, which employ four times as many as the biotech industry, were declining. Of course, the report also recommended new government "investment" to protect and revitalize the state's current technology sector.
Health insurance
Most legislators express their concerns about the cost of health insurance premiums, but two bills that would increase the cost of health insurance are close to becoming law. The House is scheduled to consider House Bill No. 4423 next week. The bill would impose a new mandate on all health insurance policies sold to small businesses in Massachusetts by requiring coverage for non-biologically based mental health conditions. The bill will also be voted on prior to completion of a cost-benefit analysis (as required by law) of the impact of the newly proposed mandate on small businesses.
Meanwhile, the Senate will consider House Bill No. 4783, legislation to establish a minimum nurse-to-patient staffing ratio at all hospitals. The legislation would take management of hospital staffing away from hospital administrators and impose staffing levels by state regulation. Cost estimates range from $200-$500 million. Both laws would certainly result in higher health insurance premiums.
On a more positive note, Senate President Murray's legislation containing provisions to address costs in the system (Senate Bill No. 2660), such as requiring electronic billing and medical record keeping, and giving information about costs and outcomes to consumers (transparency), has passed the Senate and is awaiting action in the House. But the "cost and quality" Web site originally required by the Health Insurance Reform Law to be operational on Jan. 1, 2007, to give consumers information about the cost and quality of medical procedures and hospitals has been further delayed from its latest June 24, 2008, start-up date.
And the sustainability of the Massachusetts health insurance experiment may depend on the outcome of on-going negotiations between the federal government and the state wherein the state is seeking hundreds of millions of dollars of continued supplemental funding through Medicaid to support the program.
Sales tax holiday
Citing flagging state revenues, Speaker DiMasi threw cold water on a fifth annual sales tax holiday weekend in August. Senate President Murray expressed her continuing support for the idea thus creating another tension point in legislative relations. Fact: State revenues for FY 08 ending June 30 will be more than $1 billion above expectations.
End of session priorities
The Massachusetts Legislature's formal sessions are scheduled to end by legislative rule on July 31, although informal sessions will be held until January 2009. After June 30, the Massachusetts Legislature will be one of only ten state legislatures nationwide that are still in session. As formal sessions wind down, only "prioritized" bills receive attention. In an interview, Speaker DiMasi said that a proposal to limit employers' rights to review criminal records of prospective workers is a priority.
And in D.C.
NFIB is supporting bipartisan legislation filed by Sens. Durbin (D-Ill.), Lincoln (D-Ark.), Snowe (R-Maine) and Coleman (R-Minn.) to make health insurance more affordable, predictable and accessible for businesses with less than 100 employees. Called the Small Business Health Option Program (SHOP), the bill would establish a national healthcare purchasing pool from which small business can choose from and access competitive insurance policies, enabling the spreading of risk over a large number of participants. It also gives small businesses that offer health insurance to employees a targeted tax credit (self-employed persons and businesses with less than 50 employees who pay at least 60 percent of premiums are eligible for a credit). And a revised rating system would protect small businesses against large rate increases due to one employee getting sick.
NFIB is offering free educational webinars to NFIB members through our Small Business Legal Center. The most recent offering addressed the immigration issue and provided tips to ensure that your business employs authorized workers. Learn more by visiting the Small Business Legal Center online.
