Wednesday, August 13, 2008

Tightening the Screws on Business in Massachusetts 

By Marc Kilmer

Categories:  Massachusetts

The state of Massachusetts is targeting businesses to help cover the shortfall in revenue to pay for the state's health care plan:

Current law requires most employers with more than 10 full-time equivalent employees to offer health coverage or to pay an annual "fair share" penalty of $295 per worker. It gives companies an option of paying at least 33 percent of full-time workers' premiums within the first 90 days of employment or making sure that at least 25 percent of their full-time workers are covered by an employer plan.

But the new regulations would require employers to meet both requirements, or pay the penalty.

So let me get this straight -- companies are facing a new mandate to provide insurance for their workers, which may add up to thousands of dollars per worker, or they can opt out for $295 per year? Who wants to bet that a good number of employers stop offering insurance altogether? Of course, I'll guarantee when this happens there will be a call to increase the penalty payment. It seems that Massachusetts businesses just can't win.

This quote from an advocate of this plan kills me:

But Health Care for All, one of the state's largest consumer groups, applauded the proposals. Brian Rosman, the group's research director, said consumers were required this year to pay higher premiums and deductibles to help cover the funding shortfall.

"We think this implements the shared responsibility concept that was the hallmark of healthcare reform," he said. "It makes sense to us to say to companies that offer minimal or no benefits, 'You have to make a small contribution.' "

A "small contribution"? Spoken like someone who is completely unfamiliar with the travails of businessmen. Many businesses cannot afford to provide health insurance, due in large part to the regulation of the small group market. But Mr. Rosman seems to think they are just being selfish and greedy. I guess it would be better for everyone if they just went out of business, huh?



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