A general piece of advice for Involved Voters: If you hear something about health care reform that sounds outrageous - it's likely to be a half-truth or even a complete lie. This is especially true when it comes to those who are against giving us the option to have health insurance that's administered by the federal government - just like Medicare and the health plan that Congress has.
I can think of many circumstances in which people would welcome an option for health insurance that wasn't driven by a profit motive. For example, someone who is starting their own business but either can't get coverage from private health insurance companies because of a pre-existing condition - even a minor one that can be controlled by diet and exercise - or can't afford the premiums.
The question I have not been able to find a satisfactory answer for is: How exactly does having private health insurance driven by a profit motive benefit the person who is covered by that insurance? Some of us have public health insurance options now - Medicare and the plan available to members of Congress. These are well-administered, have low overhead costs and give people their choice of doctors and hospitals. Why shouldn't more people have a similar public health insurance plan available to them?
As a person who owns a small business, this particular bit of myth-busting caught my attention, so I'm passing it along:
Health Insurance Reform - DAILY MYTHBUSTER: Impact on Small Business
07/28/2009
Myth: The House bill pays for health care reform with a “small business tax” that will kill jobs.
Fact: Small businesses benefit enormously from America’s Affordable Health Choices Act.
- Reform dramatically reduces small business health costs. The Small Business Majority recently released a report that showed that without reform, small businesses will pay nearly $2.4 trillion in health care costs over the next 10 years. If health insurance reform is enacted, the report found that small businesses could save as much as $855 billion over 10 years, nearly 36 percent. This money can be reinvested in the business and jobs.
- Reform eliminates price and benefit discrimination against small businesses. A Commonwealth Fund study found the smallest firms pay an average of 18 percent more in health insurance premiums for the same benefits than larger firms. By creating a pool and offering assistance, the House health insurance reform bill will lower small business costs and increase options. Alternatively, those who would rather contribute than offer will have a discrete, predictable contribution and the knowledge that their employees will have decent affordable health care.
- Reform can save and increase jobs. Phillip Cryan, an economist from the University of California-Berkley, estimates that the 8 percent employer responsibility requirement in H.R. 3200 would result in a net gain of 55,365 jobs, a rise in productivity, and a slowing in the rate of health inflation.
- Most small firms are exempt; others are subject to lower rates. 76 percent of all businesses are exempt altogether from the employer responsibility requirements. An additional 7 percent of these firms would pay a graduated rate of 2 to 6 percent if they do not offer coverage. More than 72 percent of firms with payrolls of $250,000 to $500,000 and less than 250 employees already offer worker health coverage today – and will have better options under HR 3200.
- Small business owners and their workers account for the largest share of the uninsured. An estimated 27 million of the 47 million Americans without health insurance are small business owners and their workers, according to the National Federation of Independent Business. H.R. 3200 provides market reforms and assistance to ensure coverage for small business owners and their employees.
That is why employers of all sizes are supporting the America’s Affordable Health Choices Act. The Main Street Alliance, a small business group, supports the bill because it “will help make America's small business more competitive by giving them greater control over one of the most costly and unpredictable aspects of doing business: the spiraling costs of providing quality health coverage.” [7/15/09]
