ATTENTION:  Are you awake out there?  Do you want your access to health care or lack of health care to be decided by the federal government?  The SHOP Act has been introduced in Congress.  The Small Business Health Options Program Act! 

Here is the background:

• Health and Human Services (HHS) would administer a health insurance program for small businesses and self-employed individuals to purchase health insurance through both state and national insurance pools.
• HHS would work with the National Association of Insurance Commissioners to set rating requirement, administrative procedures, and standards of external and internal review.
• It prohibits the use of health status and claims experience for small groups, subject to the same pitfalls of community rating and guaranteed issue requirements that increase costs for everyone and discourage participation from younger, healthier groups and individuals.
• States could opt out and apply their own health benefit plans.
• The SHOP Act provides a tax credit to participating small businesses which distorts the market and increases the likelihood of crowding out private insurance, but does nothing to address the rising costs of health care.

Here are the problems:

• The SHOP Act relies on more regulation instead of less, increasing costs and creating bureaucracy.
• Barriers from purchasing insurance across state lines should be removed, but the SHOP Act creates a new system rather than removing barriers.
• This bill allows HHS to mandate the benefits included in the plans, reducing individual control over health care decisions and unnecessarily increasing costs.
• It doesn't let the market compete by providing cost constraints that ultimately inhibit health providers' ability to innovate, decrease costs and increase quality and access
• Better, simpler legislation, such as allowing small businesses to purchase insurance across states lines, would accomplish the same goals that this bill would fail to achieve.

Tell me what you think of this- I need to hear from you…….

3 Responses to “Health Care for Small Business?”

1. Lisa Dolan Says:
   May 11th, 2009 at 7:26 pm

   Terry: I definitely think something must be done. We are having such problems trying to get insurance for a small group. Although we now have 300 employees, some are classified under the SCA because they are guards performing on federal sites, some are office staff (6) and the rest are working on private sites and don’t fall into the same category as those working the federal sites and getting the H&W. We are also in different states so the insurance must be portable. I have 3 people in management that are on a major medical plan. We pay 80%. One of the managers told me this evening that he can no longer afford to pay the 20% and wants to opt out. I would not be able to keep the insurance with just 2 people on the plan although I have some in my Virginia office who are looking for healthcare. The only problem is the VA. employees cannot use HIP b/c that is NY coverage only. I don’t want the government to dictate to me what my options are but on the other hand, what is being done to force them the private companies to come to the table and offer cooperative rates? How can we get simpler legislation that would allow SB to purchase health insurance across state lines? Tell me because I will help to push it.

2. Maureen Cretella Says:
   May 12th, 2009 at 2:33 pm

   Terry, right now as a business owner i provide insurance, at my expense, not my employees, to the entire non union staff, a total of 9 people at an annual cost of $112,000, I am not sure how much ,longer i can continue this, HOWEVER, all this talk about nationalized health care raises one big question to me that i have not heard anyone discuss…nationalized health care amounts to ‘PRACTICING MEDICINE WITHOUT A LICENSE’ a doctor prescribes medicines or a procedure and then an operator or clerk determines its merit…what is wrong with this picture??? thanks for letting me vent, regards, Maureen Cretella

3. Nancy Parsons Says:
   May 19th, 2009 at 11:11 am

   Hi Terry,

   I believe there are ways we can reform and improve health care dramatically without nationalizing or socialized medicine. The last thing we need is federal government control of health care for small businesses, then all. SHOP, in my view, is a disaster. It seems that WIPP is apparently supporting this or feels that the debate is over??? I am a newer member — however, to me they seem like a far left leaning group. I do not see them as bipartisan at this point. Is that your experience?

   Unfortunately, as you know, the Obama Adminstration and Congress wants to socialize and control nearly all sectors which will destroy many of our businesses and the economy as we know it today. They want to nationalize health care which is 17% of our economy. This is beyond frightening seeing how well they have done with Medicare, Veteran’s Hospitals, and the Post Office. Then, the level of care is awful with socialized medicine. My daughter and husband both would be dead today if we had socialized medicine. In the past 2 years, both required major emergency surgery or they would have died. In the socialized world of medicine, these costly procedures would likely have never been approved on time.

   I have been sending health care solution ideas to Oklahoma legislators and presidential candidates over the past year. Not surprising, my suggestions have fallen on deaf ears. Below is what I have suggested…

   FORGET SOCIALIZED MEDICINE!
   A Health Care Solution Focusing on Small Businesses

   There is no need for socialized or nationalized health care which would ruin the best medical services available in the world.

   The solution is with small businesses that employ 80% of the population. The problem is — tax laws are severely unfair to small businesses. In addition, there are restrictions on access to grouped insurance policies and these two factors are why many small businesses cannot afford to provide health care for employees. Hence, those employed by large corporations, government jobs, and the poor and elderly all have basic healthcare or better (the poor being covered by Medicaid and related state programs.) For the most part, it is those working for small businesses that fall in the gap populating the ranks of today’s “uninsured”.

   This hole can be easily closed without ruining the best health care available in the world today. Just ask the Canadians and British citizens who must wait six months or more just to get a needed MRI or those who are outright denied life saving surgical procedures based on government policy decisions.

   Most politicians and people do not understand or have empathy for the tax inequities small businesses must currently endure. This is especially true when President Obama plans to rais our taxes further. In short, small business owners must:

   1. pay income tax at their personal income rate which is typically 35% plus the prevailing state income tax rates (this does not count social security employer taxes, sales taxes, property taxes, workers comp and more).

   2. add to their personal income any operating expense funds that are in the company account at the end of each year. This amount must be added to their personal income – EVEN though these funds are essential for paying expenses in the first and second quarter of the new year. Keep in mind, these funds are not “income” or “earnings” paid to the owner(s)! So, if it costs $30,000 to run a business each month, it would be prudent to have $60,000 to $90,000 available in the bank to be able to pay bills and make payroll, especially in the beginning of each year when accounts receivables or sales can be slow… However, this money is taxed as “income” at year end. So what happens is that SMALL BUSINESSES ARE ACTUALLY TAXED ABOVE 35%!!!!

   3. Last, small businesses are precluded from pooling as a group to obtain better health care insurance premiums forcing them to buy more expensive and less comprehensive plans for their employees.

   Solution:

   * First, allow operating expenses amounts of up to three months of operating expenses to be free of any tax liability (since it is not income anyway).

   * Provide a significant tax incentive (straight deduction) equaling premiums for providing health care coverage.

   * Adopt legislation permitting small business owners to form consortiums and purchase group health care insurance at actual large group rates. The private sector needs to develop and manage this process – not the federal government or DHHS.

   * Pass meaningful lawsuit, malpractice, and tort reform impacting health care providers, pharmaceuticals, and other health care equipment and devices. These are the “hidden” costs yet are making health care and medicine costs out of control.

   * Review insurance industry standards and adopt reforms that help policy holders, providers, and costs within a mutually benefiting framework.

   Let’s not walk down the path of socialism. Let the free markets work by lifting some of the government’s excessive burdens off of the nation’s greatest employers – small businesses.

   Terry — sorry for the length — this is a topic I am very concerned about as a citizen, small business owner, and mother of 4.

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