Why health care worries businesses

Published 10:14 pm Monday, August 2, 2010

News last week that Democrats on a key House Committee had patched up their differences on a government overhaul of the health care system was not considered good news by the nation’s business organizations.

Business groups are leery about government-run health care and that’s how they see the various plans floating through Congress.

In a nutshell, they’re worried about the cost of such a plan and about the quality of anything that’s government led or government run.

“The government has a bad track record on health insurance,” said Donna Stewart of the Association of Washington Business, who spoke about health care at the monthly meeting of the Greater Marysville Tulalip Chamber of Commerce.

Health care is not an issue that I will pretend to have an informed opinion about. But I thought I’d use some of Stewart’s comments to at least explain why business groups are worried and what they’re concerned about.

Stewart said businesses have seen the cost of providing health care insurance to their workers skyrocket over the years. What they’d like to see, she said, are some changes that will put their costs in check “without destroying what’s working well.”

What’s good about the U.S. heath care industry, she said, is that the medical care available is spectacular and that we lead the world in developing innovative drugs.

“Congress needs to slow down,” she said of the push to change the health care system before the end of the year.

I’m inclined to agree with Stewart, and it’s not necessarily from anything she said. It’s more about what she did, which was to show as a visual aid a printed copy of legislation Congress is considering.

The printout was 1,000 pages long.

That’s the equivalent of the Snohomish County phone book on my desk. Complete with Yellow Pages, it’s 1,050 pages long. Legislation bigger than the phone book is a scary thing. Who knows what’s in it?

Certainly no actual member of Congress has read any legislation that’s 1,000 pages long. Maybe a few have read the Cliff Notes version, but I doubt it.

Stewart said one of the big areas of concern among the AWB is what’s called the employer mandate, or shared responsibility for employers. It requires business owners to offer qualified coverage to employees or to pay a payroll tax that would go into an insurance trust fund.

Stewart’s group doesn’t like the idea of a new tax.

It noted that businesses with about seven employees and a payroll of about $250,000 would pay around $5,000 to the government in lieu of having a health insurance program, businesses of 11 or so employees with up to $400,000 in payroll would pay up to $24,000 a year and businesses larger than that would pay 8 percent of payroll costs.

Stewart’s concern is that a government plan would essentially undercut private insurance plans, putting private insurers out of business.

“An artificially low price for the public option could draw people out (of private insurance) and ultimately collapse the private insurance option,” she said.

She said government should allow more competition for health insurance, not less, to try to keep costs lower. And she’d like to see government help make changes in medical malpractice lawsuits. Now, she said, many doctors are encouraged to order tests and other information they may not be medically necessary, but that they believe is needed to protect themselves legally.

Doctors take an oath not to do any harm to patients, and Stewart is hoping government will take the same approach in reforming the health care industry.

I’m not sure what side to take here, but like Stewart, I encourage you to learn more about the ideas swirling around inside those 1,000 pages and to let your representatives in Congress know what you think about them.

Mike Benbow: 425-339-3459; benbow@heraldnet.com.