What healthcare needs--competition

The South Carolina General Assembly comes back into session today.  Over the next several days I’ll be discussing the Small Business Chamber’s state legislative agenda.

No issue has consumed as much time and energy for us than the issue of health insurance.  We’ve made great progress toward helping make health insurance more affordable for small business with the passage of the federal Affordable Care Act in the spring of 2010. 

Since the ACA began hundreds of thousands of small businesses have lowered their health insurance costs by taking advantage of the new small business health insurance tax credits.  These and other benefits to consumers (such as lower healthcare costs for seniors and over a million young adults now having health insurance) have come without causing dramatic increases in premiums.  A new report out yesterday shows that the health reform only contributed 0.1% to the national costs of healthcare in 2010.

However, there is one unaddressed matter that everyone says is important to controlling premium increases—competition.

If we really want competition in the health insurance marketplace, then we must stop the “most favored nation” contract clause that guarantees that no other insurance carrier gets a lower provider compensation rate compared to the one with this clause.  The “most favored nation” clause stymies insurance carrier competition that can lead to lower healthcare costs. 

But the “most favored nation” clause is more cancerous to competition than just requiring no better compensation rate for other carriers.  It can actually require the provider to charge other insurance carriers more—up to 40% more in some states—than what they charge the carrier with the “most favored nation” clause.  It is easy to see if we truly want competition in the health insurance industry, we must make the “most favored nation” clause illegal.

Senate Bill 316 would put an end to the “most favored nation” clause.  The bill was introduced last year but failed to receive even a subcommittee hearing—the first step in the legislative process—in the Senate Banking and Insurance Committee.  I have a meeting with the chairman of that committee, Senator David Thomas, this week.  I’ll be asking him to assign the bill to a subcommittee as quickly as possible to give S.316 a chance this session.

If you want to help, contact Senator Thomas and ask him to support S.316 and appoint a subcommittee for the bill.  Here is the link to the page with his contact information:

http://www.scstatehouse.gov/member.php?code=1818181600

Health insurance meetings start Monday in Charleston

Benefits of Healthcare Reform on Small Businesses Focal Point of South Carolina Listening Tours

New Small Business Health Plan Rolls Out

Free events beginning Aug. 29 open to all small businesses; chance for entrepreneurs to learn about new law and share ideas about how to implement it in South Carolina.  Plus information on new small business health plan.

Columbia, South Carolina, Aug. 25, 2011—The South Carolina Small Business Chamber of Commerce (SCSBCC), in conjunction with small business advocacy organization Small Business Majority, will host interactive events starting August 29 on healthcare reform’s benefits to South Carolina small businesses and the state’s role in implementation.

Also at the meetings details of a new small business health plan will be announced.  The SCSBCC has partnered with the Carolina Care Plan to offer a highly competitive health insurance for small businesses.  Plan benefits and rate information will be available at the meetings.

The free events, which are open to all small business owners, will feature a panel of small business experts and advocates discussing the topics in the new law most relevant to small businesses. These include small business tax credits, the state’s work setting up a health insurance exchange, wellness grants and cost containment. It will also give small business owners a chance to provide the panel ideas and suggestions on how to proceed with implementing healthcare reform in South Carolina. A question and answer period will follow the panel discussion.

“There have been many reforms to our healthcare system over the past year, both nationally and in South Carolina,” said Frank Knapp, president and CEO of the South Carolina Small Business Chamber of Commerce. “It’s important that small business owners hear about how many of the new healthcare law’s business-friendly provisions can help, and also for them to tell us what the state can do to make healthcare reform work for them.”  

Additional panelists include Jessica Stone, outreach manager at Small Business Majority and Lee Long with Gibson & Associates.

 “We believe it’s important for small business owners in South Carolina to learn more about healthcare reform and how it affects them,” said Small Business Majority CEO John Arensmeyer. “This interactive dialogue is a great way for them to get the information they need to take advantage of and comply with key provisions of the new law, and for us to get feedback on their thoughts and concerns.”

“The new health plan is just another one of our efforts to help make this employee benefit more affordable for small businesses,” said Knapp.

To register and find additional details about the events, click on the corresponding link below:

Monday, Aug. 30

Location: Berkeley Electric Co-op Johns Island District Office, 3351 Maybank Highway, Johns Island, SC 29455

Time: 6-8pm

To register: http://www.smallbusinessmajority.org/news-and-events/details/0811_charleston_flyer.pdf

Tuesday, Aug. 30

Location: ILA Union Hall, 1142 Morrison Drive, Charleston, SC

Time: 8-10am

To register: http://www.smallbusinessmajority.org/news-and-events/details/0811_charleston_flyer.pdf

Tuesday, Sept. 6

Location: Midlands Tech Harbison Theater, 7300 College Street, Columbia, SC

Time: 6-8pm

To register: Contact Sheila Starkey at Sheila@scsbc.org or (803) 252-5733

Tuesday, Sept. 13

Location: West Columbia City Hall, New Brooklyn Room, 200 N 12th Street, West Columbia, SC 29169-6458

Time: 6-8pm

To register: Contact Sheila Starkey at Sheila@scsbc.org or (803) 252-5733

Tuesday, Sept. 27

Location: Greenville County Library, 25 Heritage Green Place, Greenville, SC

Time: 6-8pm

To register: Contact Sheila Starkey at Sheila@scsbc.org or (803) 252-5733

About Small Business Majority

Small Business Majority is a national nonpartisan small business advocacy organization founded and run by small business owners and focused on solving the biggest problems facing small businesses today. We speak for the nearly 28 million Americans who are self-employed or own businesses of up to 100 employees. Our organization sponsors scientific research that guides us to understand and advocate on behalf of the interests of small businesses across the country.

 

H.R. 3 a deliberate attack on small business

Today the U.S. House might vote on H.R.3., legislation which would negatively impact small busiesses in their ability to obtain health insurance tax credits.  Call your congressman today and ask him to vote NO on H.R. 3.  Below is my editorial that ran in The Hill's Congress Blog on May 2, 2011

House Member Name- DC Office Phone Number

• Representative Tim Scott (R - 01) 202-225-3176
• Representative Joe Wilson (R - 02) 202-225-2452
• Representative Jeff Duncan (R - 03) 202-225-5301
• Representative Trey Gowdy (R - 04) 202-225-6030
• Representative Mick Mulvaney (R - 05) 202-225-5501
• Representative James E. Clyburn (D - 06) 202-225-3315  

After decades of escalating group health insurance premiums and demands for Congressional action for relief, a little over one year ago many of our small businesses finally were given the opportunity for federal health insurance tax credits.

Now H.R. 3, up for a vote this week, threatens to erase this benefit for small businesses because it would eliminate the health insurance tax credits under the Affordable Care Act for any existing or new plans that provide coverage for abortion.

The problems H.R. 3 would cause for small businesses that are trying to do the right thing and offer health insurance have nothing to do with the ideological intent of this bill. Even if a small business owner agrees with the intent, the cost of passage of H.R. 3 in terms of time, money and continuity of policy is very significant.

Small business owners do not have the expertise to closely examine healthcare plans to determine if abortion coverage is included. Such services are not labeled “abortion” but rather fall into numerous clauses in a health care policy from prescription drugs to outpatient surgery to maternity care that includes unforeseen complications. Small business owners are no more prepared to completely understand the fine print of their health insurance policies than members of Congress.

Requiring a small business owner to try to understand the intricacies of their health insurance policies would require considerable time on their own or with an insurance agent (who also probably has no idea how to interpret the verbiage in the policy as it relates to abortion). Essentially H.R. 3 will cause a small employer to divert time from running the business. And if time is money, as we are all told, then H.R. 3 will be an increase in cost for small businesses offering health insurance.

Small businesses that finally determine that their health insurance policy does in fact cover even one abortion service will be financially punished in one of two ways. Either they can keep their present policy and lose thousands of dollars in hard won tax credits or they will give up their current health plan and most likely have to pay higher premiums for a new plan. The latter will result from both re-underwriting by a new carrier and adding provisions now required in any new policy. This is especially true since the health insurance exchanges will not be in place until 2014 to increase competition for this business.

H.R. 3 is simply a slap in the face to the millions of small businesses now offering health insurance to employees and eligible for the new tax credits. Targeting small businesses for such punitive action, while ignoring big businesses that also receive tax benefits when offering health insurance, demonstrates a callous disregard for the “backbone of our economy”, as members of Congress love to proclaim.

http://thehill.com/blogs/congress-blog/healthcare/158669-hr3-a-deliberate-attack-on-small-business

Health insurance tax credits available

The South Carolina Small Business Chamber signed on to the following letter sent to two to the country’s largest tax preparer companies, H&R Block and Jackson Hewitt Tax Service, encouraging them to educate their clients about the small business health insurance tax credits available starting in 2010. This is but one of the ways the health insurance reform, the Affordable Care Act, will be helping make health insurance more affordable for small businesses.
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February 17, 2011

Dear Tax Professional,

Tax season is upon us once again, but this season brings with it an opportunity that hasn’t been available in the past—an opportunity to help save your small business clients some money. Thanks to the new healthcare law, small businesses with fewer than 25 full-time-equivalent employees and average wages of less than $50,000 will be eligible for a tax credit on their 2010 returns of up to 35% of their health insurance costs.

In the face of rising healthcare costs, the credit was included in the Patient Protection and Affordable Care Act to help the smallest businesses—the ones who have the hardest time affording insurance—provide their employees with coverage without breaking the bank. More than 4 million small businesses nationwide, or 83%, are eligible to receive the tax credit on their 2010 taxes. However, many don’t know it exists. It’s up to you to inform them.

We encourage you to educate your clients who are eligible for this credit so they can take advantage of it. It was created specifically to bring financial relief to the millions of small business owners struggling to afford health insurance. By spreading the word, you can make a substantial impact and ensure this credit doesn’t go unnoticed in the days leading up to the April 15 deadline.

Regards,

American Booksellers Association
American Small Business League
American Sustainability Business Council
Bay Area Council
Business for Shared Prosperity
Capital Area Independent Business Alliance
Gloucester Fishermen's Wives Association
Main Street Alliance
Massachusetts Fishermen's Partnership
National Puertorican Chamber of Commerce
National Small Business Association
National Gay and Lesbian Chamber of Commerce
Northeast Business Group on Health
Oregon Small Business Advisory Council
Oregon Small Business for Responsible Leadership
Oregon Small Business Healthcare Initiative
Small Business California
Small Business Majority
South Carolina Small Business Chamber of Commerce
Women Impacting Public Policy

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

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

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.