Monday, January 31, 2011

SC Government and Big Businesses Already Benefiting from “Obamacare”

The Florida judge's ruling Monday against the Affordable Care Act (ACA) is just one more step along the path to a final decision by the U.S. Supreme Court in a few years.  Now two Federal Judges have deemed the individual mandate to be unconstitutional and two have not found it to be so.  Of note is that no judge has found the expansion of Medicaid in the ACA to be unconstitutional.

But until the Supremes rule differently, the ACA is the law of the land and it is doing exactly what it was intended to do--make health insurance more affordable even for those who want to repeal it. 

Here is a perfect example.

Leaders of South Carolina’s state government and our state’s big businesses might continue to oppose health care reform but that’s not stopping them from taking money from the new program.

The ACA created the Early Retiree Reinsurance Program (ERRP) to help employers with the cost of paying for health care of their retired employees not yet eligible for Medicare.

And guess what anti-reform SC business was the first to tap funds under this ACA program? Blue Cross Blue Shield of SC.

Joining BCBS in using the ACA to make health care more affordable is the SC Budget and Control Board, Employee Insurance Program. The Budget and Control Board is chaired by ACA-hater Governor Nikki Haley.  Therest of the Board consists of other Republican leaders sworn to repeal the ACA.

Is this irony or hypocrisy? You decide.

For a complete list of SC local governments and businesses also receiving ACA funding under the ERRP, click here.

Friday, January 28, 2011

Big-business hooker

The Financial Crisis Inquiry Commission released its 576 page report yesterday on the causes of the great recession. They interviewed over 700 people with first-hand knowledge of how the crisis came to be.

“Avoidable” concluded the Commission. Our regulators failed us. The lack of appropriate regulatory oversight failed us. Excessive Wall Street risk-taking failed us. Big business corporate mismanagement failed us. From the Clinton administration until 2008 we were on track to the inevitable collapse of our economy.

One non-cause of the crisis according to the Commission—the government’s efforts to promote homeownership. Congratulations to the Commission for not blaming the victims.

Immediately upon the release of the Commission’s report (and probably before reading it) the U.S. Chamber of Commerce went on the attack. It called the report a “missed opportunity to produce an objective, non-partisan look at how to strengthen our financial regulatory system”.

Now there’s an oxymoron. The U.S. Chamber advocating objectivity, non-partisanship and a strong financial regulatory system.

The reality is that the U.S. Chamber has been paid very well to oppose financial regulations for a long time. Since the financial crisis it has fronted for the same financial industry that drove our economy over the cliff. It opposed the much-needed Wall Street reform legislation that passed last year and is doing everything it is getting paid to do to water down the new regulations.

If I had about $50 million and was willing to deal with the principle-less U.S. Chamber, I could get them to support the Commission’s report. It’s just business to them. No different from a high-priced hooker telling the customer, “Show me the money and I’ll do anything you want.”

Wednesday, January 26, 2011

Repeal this!

President Obama received rousing applause Tuesday night in his State of the Union address when he called for bipartisan agreement on repealing one part of the Affordable Care Act:

“We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses. “

All members of Congress stood up to applaud because, while the public in general might not have understood the specific issue, Congress and many small businesses understood.

The 1099 part of the ACA requires a business to report payments made for over $600 for goods and services to the IRS using a 1099. This idea started in the last Bush administration to uncover income not being reported by businesses to avoid taxes. The concept found its way into the ACA as a way to generate about $19 billon more dollars to help pay for the provisions in the Act.

The burden for a small business, if this 1099 provision should be allowed to go into effect in January of 2012, would be tremendous. Plus, there are serious doubts that the IRS could handle the amount of information that would flood the agency for it to actually be used to identify businesses owing taxes.

Democrats, Republicans, independents, the President….everybody wants to repeal this 1099 provision. Democrats tried to put the repeal in the extension of the Income Tax Cuts legislation during the recent lame duck session but were rebuffed by GOP negotiators.

The biggest problem (other than partisan politics) in repealing the measure is money. Where does Congress come up with the $19 billion it is projected the government would lose in taxes so as not to increase the deficit?

This week Senators Reid, Baucus and Landrieu introduced a legislation to repeal the 1099 reporting requirement. So where is similar legislation from the majority party in the House?

Monday, January 24, 2011

Goliath goes down

Back in November the South Carolina Small Business Chamber of Commerce sent an Action Alert to our members urging them contact the S.C. Workers’ Compensation Commission to express their opposition to an insurance industry proposal unfair to small businesses. The industry wanted to shorten the time companies had to wait to cancel a workers’ comp policy following the premium due date.

The industry tried to argue that businesses should only be given a 10-day cancellation period instead of the present 30 days. Why? To eliminate a contradiction in the law, the industry lamely argued.

Then came a December public hearing on the matter was held and the Workers’ Comp Commissioners were handed more letters from small businesses than I’m sure they’ve ever had on an issue. The opposition was strong both in writing and in my testimony. Timothy Killen, director of the State Workers’ Compensation Uninsured Employers’ Fund, put the nail in the proposal’s coffin correctly pointing out that the Commission’s 30-day cancellation policy was not at all inconsistent with the law.

At its recent monthly meeting, the Workers’ Compensation Commission unanimously rejected the insurance industry’s proposal.

Actions Alerts don’t always result in the outcome we want but this time David beat the mighty Goliath.

Wednesday, January 19, 2011

Only 26% favor ACA repeal

A new Associated Press poll shows that only 26% of the public now supports a full repeal of the Affordable Care Act.  Call your Representative today using this toll free number--866-922-4970--and urge a "no" vote on repeal today.  The vote won't be until tonight so you have time.  See our Action Alert for more details. CALL NOW!

Below is my opinion piece that ran in The Hill's Congressional Blog yesterday.

Vote 'NO' on $4 billion small business tax increase

By Frank Knapp, Jr. - 01/18/11

The first vote of the new U.S. House will be to increase taxes on small businesses. That’s right. A $4 billion tax hike on small businesses is exactly what Representatives are supporting if they vote to repeal the Affordable Care Act (ACA).

Last year Congress approved $4 billion for health insurance tax credits small businesses could tap into for 2010 taxes if they offered the benefit to their employees. That figure was Congress’s best estimate of how much each year would be needed under this important ACA effort to make health insurance more affordable. About four million businesses qualify for the tax credits because they have fewer than 25 employees with average wages below $50,000.

The response from small businesses since the passage of the ACA last year has been overwhelmingly positive.

Major insurance carriers and research organizations have reported dramatic increases in small businesses offering health insurance due primarily the ACA’s tax credits. The tax credits are also making health insurance more affordable for the small businesses that were already providing the coverage to their employees.

As this real life evidence and a recent survey by the Small Business Majority show, the ACA is and will do exactly what it was intended to do—encourage small businesses to offer employer-based health insurance by making it more affordable.

With this level of support from America’s small businesses for the tax credits, it is no wonder that the House leadership is rushing an ACA repeal to a floor vote without going through the standard committee hearing process. Real small business organizations like the American Sustainable Business Council, Main Street Alliance and ours would have flooded committee hearings with grateful business owners.

Committee members would have heard how the owners finally could afford health insurance that will help with employee retention and recruiting. Other business owners would have explained that without the tax credits they can no longer afford to offer health insurance to employees. Committee members would have also heard stories of owners with their own pre-existing conditions who finally can have health insurance for themselves because group health insurance was now affordable.

Small business owners would have also told members that taking away the tax credits would result in a tax increase for them if they want to keep their group health insurance. Collectively a $4 billion tax increase.

Had such committee meetings been allowed, Congress would have clearly heard the voices of small business owners now realizing that all the scare tactics have been wrong about the ACA. It does not require them to provide health insurance. It does not raise their business taxes. It is not killing small business jobs.

But the ACA does offer them and their employees a chance to address the issue that has been their number one concern for over a decade—affordable health insurance.

It is time to set partisan politics aside and for each Representative to stand up tomorrow and reject this $4 billion tax increase on small business. 


Frank Knapp, Jr. is the president and CEO of The South Carolina Small Business Chamber of Commerce.

Tuesday, January 18, 2011

Oppose small business tax increase

Action Alert!!

Call 866-922-4970

Oppose $4 Billion Tax Increase on Small Business

Small businesses across South Carolina are taking advantage of new tax credits for offering health insurance to their employees. The new healthcare law put aside $4 billion this year for this effort to make health insurance premiums more affordable for small business.

But tomorrow (January 19th) the U.S. House of Representatives will vote to repeal the Affordable Care Act causing a $4 billion tax increase on millions of small businesses.

We cannot turn back the clock on healthcare reform that is finally making health insurance more affordable for small businesses.

For more of the small business benefits of the Affordable Care Act, click here. To see how the Affordable Care Act will help our economy in general, click here. Besides the harm to small business, here is more information as to how repealing the Affordable Care Act will affect South Carolinians.

Contact South Carolina U.S. Representatives today and tomorrow using this toll free number to the U.S. Capital switchboard -- 1-866-922-4970*. Simply ask the operator for your House member’s office. Or you can email or fax your message directly to the offices (see S.C. members’ contact information below).
________________________________________

Here is the message:

Please vote NO on repealing or undermining the Affordable Care Act.

1. Repealing healthcare reform (Affordable Care Act) is a job killer because it is a $4 billion tax increase on small businesses currently using and soon to be using the health insurance tax credits. These small businesses will have to lay off workers to continue to afford the health insurance because of the loss of the tax credits if the Affordable Care Act is repealed.

2. The Affordable Care Act does no harm to small businesses because it does not require small businesses to offer health insurance and does not create any new taxes on small businesses.

3. Repealing the Affordable Care Act was not a voter mandate. Only 17 percent of voters in November nationwide mentioned health care as one of the issues affecting their vote. The economy was the dominant issue.


U.S. Representatives                                  Fax Number
from South Carolina


Rep. Tim Scott (R - 01)                            202-225-3407
Rep. Joe Wilson (R - 02)                          202-225-2455
Rep. Jeff Duncan (R - 03)                         202-225-3216
Rep.Trey Gowdy (R - 04)                        202-226-1177
Rep. Mick Mulvaney (R - 05)                   202-225-0464
Rep. James E. Clyburn (D - 06)                202-225-2313

You can also sign onto a letter to the entire U.S. House here.

*Courtesy of Families USA

Monday, January 17, 2011

MLK Jr. Day of Service

So what are you doing on this Martin Luther King Jr. Day of Service? If you have the day off, hopefully you have plans for how you are going to donate your time to make a difference today. If you don’t, check out your local paper and see how you can get plugged in.

Many of us are working but that doesn’t mean that we still can’t do something that will make our communities, state and nation better places. Put some creative thought into it.

As for me, I’m driving to Greenville (S C) to meet with the Greenville News editorial board to talk about why it is important that the Affordable Care Act (ACA) be successfully implemented. Sue Berkowitz (SC Appleseed Legal Justice Center) and John Ruoff (SC Fair Share) are going with me. This will be our MLK Jr. Day of Service activity.

Our organizations along with AARP-SC, the SC Public Health Institute and others have put together a comprehensive talking points document with factual information on many of the issues surrounding the ACA. It is a great reference for the debate this week in the U.S. House and for future false attacks both at the federal and state level.

So today go out and volunteer to make a difference. Tomorrow I’ll challenge you to make a difference with your telephone.

Monday, January 10, 2011

Open the door to debate

Let me join the growing chorus of voices calling for a return to civility in all our forms of expression. From those that profit from verbally promoting violence (talk show hosts and politicians) to those citizens who seek political change (tea party folks and bloggers)—stop the incendiary screaming laced with violent language.

Not only will this hopefully cease the encouragement of more acts such as what happened in Arizona this weekend, but it might allow for enlightened debate and information sharing.

Ironically, the day before the assassination attempt on Representative Giffords and the killing of six others, a message was posted on my Facebook page. The message was a strident comment opposing my support of the small business health insurance tax credits in the Affordable Care Act (ACA).   [The entire thread of this discussion is posted below.]

The short posting called my position “statism” and included the phrase “we will shoot it down.”

My immediate response was to ask if the gentleman owned a business so that I could understand who I was dealing with.

His response was much less vitriolic and provided some important insight into his position. I was then able to point out the flaws in his argument (and his hypocritical concern with an alleged ACA reduction in his fiancés’ government compensation for her medical services while at the same time opposing giving small businesses tax credits so they can cut their costs in offering health insurance to employees).

But more importantly, not ignoring the gentlemen and instead challenging him to a conversation opened the door to a more civil discussion. And we certainly need more of that.

Facebook Thread:

Joey:

we do not support crony capitalism. you do not have a right to enjoy a special place in the tax code.
close all tax loopholes, create one, fair rate, and repeal the bill.

this is statism and we will shoot it down.
...
shame on business for pretending they want a "free" market and then turning around and endorsing a bill that gives you special priveleges and makes serfs of doctors.

lets have a REAL free market! not this corporatist, crony capitalism you are endorsing here.
-------------------------------------------------------------------------------------------------
Frank:

Joey, For me to understand why you want to impose a $4 billion tax increase on small businesses by taking away the health insurance tax credits, please tell me what skin you have in the game. What is the business that you own and how many employees? Thanks. Frank
--------------------------------------------------------------------------------------------------

Joey:

certainly. the job killing healthcare bill reduces the amount my fiance can be reimbursed for the medical services she provides.

this, along with the tax incentives you are asking to keep (mind you, i wouldn't be taxing you at the rates t...hey are taxing you...that is a seperate issue), amount to an unfair government interference into the economy.

Asking any free individual to allow themselves to be ensnared in this is to much for anyone, whatever their cause. I support the small businesses by seeking a sensible tax code in the first place. Not by accepting that you can have goodies at my household's expense.

that is the plain truth. every American who values individualism, including you as a business owner who DEPENDS on the value of your property own property and the right to it....you ought to all oppose it.

don't be shortsighted.
-------------------------------------------------------------------------------------------------
Frank:

Joey, Thanks for the more detailed comment and civil tone. In light of the terrible violence in Arkansas, the latter is what we need more of.

Apparently it is your fiancé, not you, who has a small business. Since she is a medical provider of some sort, health care reform that enables more U.S. citizens to have health insurance should be very important to her. I’m sure she prefers to provide her services to those with insurance instead of not being paid at all.

You might want to ask her if she thinks government should shut down Medicaid and Medicare since they are government programs that use taxpayer dollars to pay private medical providers for services. You seem to be fine with these government programs that interfere with our “free market” economy and that you and I pay for with our taxes. In fact, your fiancé’s future income (and presumably yours also) is dependent on the federal government and you even complain that government compensation for her services might be decreased making “serfs of doctors”. (I don’t know what you’re talking about here because you haven’t told me what your fiancé’s services are. Give me this information and I’ll check it out to see if you are misinformed.)

So I find it hypocritical for you to support and financially gain from some government programs but be adamantly opposed to a government program to help small businesses afford health insurance for their employees. The small businesses receiving the tax credit can only do so after they spend more of their money for the insurance of their employees. In other words, they aren’t putting money in their pockets (as your fiancé is doing) but simply reducing their expenses for helping their employees—employees that might turn around and use the services of your fiancé (putting more money in her pocket).

Do we need changes in our federal and state tax codes to make them fairer? Absolutely.

But we also need a health care system that enables all of our citizens to have access to quality health care and that adequately compensates healthcare providers. Today most get their private healthcare insurance through their employer. As long as we keep this employer-based system, we must help our small businesses afford the employee benefit. That’s why the Affordable Care Act’s health insurance tax credits are important and are supported by small business owners.

Saturday, January 8, 2011

House member shot...Repeal vote postponed

House Republicans are postponing a vote to repeal the healthcare law scheduled for next week after the shooting of Rep. Gabrielle Giffords (D-Ariz.) in Arizona.

Keep Congresswoman Giffords and all the victims of this shooting in your thoughts and prayers.

Friday, January 7, 2011

Say NO to $4 Billion Tax Increase on Small Business

Action Alert!!

Call Today on Toll Free Number

The U.S. House is scheduled to begin debate today on repealing health care reform (Affordable Care Act) that will result in a $4 billion tax increase on small businesses. These businesses are now receiving or will receive tax credits for offering health insurance to employees. A final vote is scheduled for January 12th.

Over 53,000 South Carolina small businesses are now eligible for the health insurance tax credits. Small businesses here and across the country are now offering health insurance because of these credits according to major insurance carriers.

We cannot turn back the clock on healthcare reform that is finally making health insurance more affordable for small businesses.

For more of the small business benefits of the Affordable Care Act, click here. To see how the Affordable Care Act will help our economy in general, click here. Besides the harm to small business, here is more information as to how repealing the Affordable Care Act will affect South Carolians.

Contact South Carolina U.S. Representatives now through next Wednesday with this toll free number to the U.S. Capital switchboard -- 1-866-922-4970*. Simply ask the operator for your House member’s office. Or you can email or fax your message directly to the offices (see S.C. members’ contact information below).

Here is the message:

Please vote NO on repealing or undermining the Affordable Care Act.

1. Repealing healthcare reform (Affordable Care Act) is a job killer because it is a $4 billion tax increase on small businesses currently using and soon to be using the health insurance tax credits. These small businesses will have to lay off workers to continue to afford the health insurance because of the tax increase if the Affordable Care Act is repealed.

2. The Affordable Care Act does not require small businesses to offer health insurance and does not create any new taxes on small businesses.

3. Repealing the Affordable Care Act was not a voter mandate. Only 17 percent of voters in November nationwide mentioned health care as one of the issues affecting their vote. The economy was the dominant issue.

U.S. Representatives                                                                   Fax Number
from South Carolina

Rep. Tim Scott (R - 01)                                                           202-225-3407

Rep. Joe Wilson (R - 02)                                                         202-225-2455

Rep. Jeff Duncan (R - 03)                                                        202-225-3216

Rep.Trey Gowdy (R - 04)                                                        202-226-1177

Rep. Mick Mulvaney (R - 05)                                                   202-225-0464

Rep. James E. Clyburn (D - 06)                                                202-225-2313


You can also sign onto a letter to the entire U.S. House here.

*Courtesy of Families USA

Tuesday, January 4, 2011

For the sake of small business "Repealers" should repent

As my friend Sue Berkowitz, Director of the S.C. Appleseed Legal Justice Center, said in an email, “What took them so long?”

Sue was reacting to the news yesterday that the House Republicans will begin a floor debate on repealing the Affordable Care Act (the ACA is healthcare reform for those still looking for a more catchy title) this Friday with a final vote set for January 12th.

But while Speaker John Boehner and House Majority Leader Eric Cantor feed their base with a doomed repeal effort, the Small Business Majority released an eye-opening survey today of small business owners. The Affordable Care Act’s health insurance tax credits and insurance exchanges for small businesses will do exactly what was intended—encourage small businesses to offer employer-based health insurance because it will be more affordable.

Key findings of the survey:

• One-third (33%) of employers who don’t offer health insurance said they would be more likely to do so because of the small business tax credits.

• 31% of respondents—including 40% of businesses with 3-9 employees—who currently offer insurance said the tax credits will make them more likely to continue providing insurance.

• One-third (33%) of respondents who currently do not offer insurance said the exchange would make them more likely to do so.

• The same is true for those who already offer insurance, with 31% responding that the exchange would make them more likely to do so.
And just for the record, 41% of the small business owners randomly surveyed identified themselves as Republicans with 27% and 21% saying that they were independents and democrats respectively.

This positive impact of the ACA has also shown up in insurance companies reporting increased numbers of small businesses now offering health insurance due to the health insurance tax credits that went into effect this year.

However, the most distressing result of the survey was that “most respondents are not familiar with the exchange or the tax credits; only 31% of respondents are familiar with the exchange and 43% are familiar with the tax credits.”

Had the critics of the ACA put as much effort into educating the public about the benefits of the ACA for small business and the public as they have in demonizing it with misinformation largely for political purposes, we would have far fewer uninsured Americans today. But that is the price the country is paying due to the partisanship of politicians.