One more take on reform…

Dear Editor:

I am writing in hopes that the information that may be read will shed real light on the concerns of the small business community regarding the health care bills before both houses of Congress.

These are just some of the shortcomings of the proposed legislation:

• A new small business health insurance tax – the fee to be assessed on insurance companies will go directly to the small businesses premiums, once again leaving small businesses to shoulder disproportionate costs in the individual and small group marketplace;

• New mandate that punishes employers, employees and hinders job creation – mandates destroy job creation whether it is through lost hiring or greater reliance on part-time employees;

• A poorly structured small business tax credit – due to the short-term temporary nature and the limitations based on the business’ average wage, its benefit is a temporary solution to the long-term cost and affordability problem. The CBO finding that the credit would benefit only 12 percent of the small business population illustrates its lack of effectiveness;

• An unprecedented new payroll tax on small employers – this bill changes the nature of the payroll tax that has funded Medicare by creating a precedent to use payroll taxes to pay for non-Medicare programs;

• The absence of real medical liability reform;

• The creation of a new government run health care program – private insurers will be unable to compete in a climate where the rules and practices are tilted in favor of a massive government-run plan.

There are three simple changes that I feel would make an enormous forward step in health care reform:

• Allow consumers to purchase health insurance across state lines – letting our free enterprise system work to its fullest in a fair competitive manner;

• Tort reform – creating a disincentive for frivolous lawsuits and defensive medical practices;

• Allowing small businesses to form associations in order to purchase health insurance – thus giving small businesses the same purchasing power of the larger businesses.

As I stated in the “Keeping Small Business Healthy” TV spots, I urge Sen. Mary Landrieu to vote no on this bill, and bring small business owners to the table to confer on a bill that really works.

Patricia H. Felder,

Felders Collision Parts Inc., NFIB State Leadership Council chairman