Posted on 01/20/2007 3:44:02 PM PST by NormsRevenge
Businesses are wary of a crop of new state health care proposals to reduce the number of uninsured, fearing the programs will drive up their expenses without solving the problem.
Dissension already has surfaced: Maine's health insurers and businesses have balked at how the state's program to expand coverage has been funded and have filed several lawsuits over the policy.
Smaller companies are especially worried, because they are less likely to provide health insurance than bigger concerns, and some of the proposals call for companies that don't provide coverage to pay into state funds. But experts note that if the taxes paid by small businesses aren't sufficient to provide coverage for the uninsured, larger companies that do provide insurance could be tapped to contribute to state funds as well.
The California proposal calls for businesses with 10 or more employees to offer insurance to workers or pay 4 percent of their payroll into a state fund. That's already a lot of money to a small business but there's also the concern that the amount could rise if the state needs more funds, said Michael Shaw, the National Federation of Independent Business' assistant state director for California.
"Once a statute is on the books it becomes easy to bring up the tax," Shaw said
He added the policy could have unintended consequences such as stalling growth, noting that a company might not want to add a 10th employee if it has to start paying the tax. Moreover, Shaw said companies offering health insurance may drop it because paying the 4 percent payroll tax is cheaper than providing coverage, which would only add to problem of the uninsured.
The number of companies providing health insurance across the country is already falling as costs escalate. In 2006, 61 percent of companies offered employees health insurance, down from 69 percent, according to a survey by the Kaiser Family Foundation and the Health Research and Educational Trust.
The decline is especially pronounced in smaller businesses, with the number of companies with three to nine workers offering insurance falling to 48 percent last year from 57 percent in 2000. Among companies with 10 to 24 workers the percentage offering health insurance slipped to 73 percent from 80 percent over the same time period.
However, 98 percent of companies with 200 or more employees offer health insurance.
Christopher G. Renz, a principal with Mercer Health & Benefits, said larger employers are buoyed by the idea that their own health care costs might benefit from a reduction in the number of uninsured. Businesses shoulder some of the expense of the uninsured, because part of the rates they pay to hospitals and other health care providers goes to the cost of uncompensated care.
On the other hand, Renz said, some states might demand that large employers provide health care coverage to part-time or temporary workers, which would be a major expense.
The ArnyCare plan as presented is infeasible.
It is simply impossible. Arnold looks like a complete idiot for even proposing this plan. The man ran several multimillion dollar businesses, yet has absolutely no idea how utterly ridiculous this proposal is. Quite apparent he never did the accounting in any of the ventures he has invested in.
Once the insurance companies have a few weeks to explain to the state politicians their immediate business response to this plan if passed into law, the politicians and Arny will flee this proposed ArnyCare plan with great haste.
100% of the health insurance corporations will immediately stop marketing coverage in the state outside of federally regulated medical benefits plans.
The number of uninsured Californian taxpayers will double within a year or less.
Entire industries will flee from the state too.
This is the worst proposal put forth by a Californian politician in several decades. The shake out from this folly is going to be immense.
The Peoples Republic of California is going to annihilate its economy with these ill-conceived massive tax increases.
Yeah, look at the unions and Walmart. What do the unions want Walmart to do: Provide a level of care which exceeds the level of care their unions can provide - hence, the left wants Walmart to provide something theleft can't provide, thereby driving Walmart out of the market.
It's a *great* way to ensure increased outsourcing, as well as increased employment of illegal aliens.
He started to go totally off track (IMO) when he fired the GOPers on his staff and brought in old Gray Davis people and people Maria (and by extension Teddy?) approved of,
Universal health care is free health care for everyone, right? You just walk right in and get it for nothing. Everybody benefits, even illegal aliens (oh, wait a minute, they already have it?... ok, never mind that part.)
Now that we've easily dispensed with that question, let me tell you my latest UFO abduction story...
Even Andy Stern, the socialist head of a third of all union employees in the country, concedes that employers based health care has no future and needs to be scrapped. Of course, he wants Ted Kennedy to provide it but he realizes after decades of negotiating with employers over health care costs that this subject has nothing to do with employment and just complicates employer/employee relations.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
One reason why health care is high
Larry Glasscock, chairman, president and CEO of Indianapolis-based Anthem Inc., will receive $42.5 million as part of a proposed stock and cash incentive deal.
http://www.bizjournals.com/louisville/stories/2004/04/05/daily29.html
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.