Here's a great article from Investor's Business Daily detailing the health reform costs small businesses face.

Health Reform Would Bury Small Business
By Sally C. Pipes

November 6, 2009

President Obama recently delivered a special address aimed at quelling small-business owners' concerns about Democratic plans for health care reform.

The legislation, he assured, would "benefit millions of small businesses" and was "being written with the interests of Americans like you and your employees in mind."

That's a nice sentiment. But it's not backed up by the facts. Several new studies show that ObamaCare will dramatically increase health costs for most small businesses.

One study relied on actuarial data from WellPoint, a large health insurer that provided customer data in 14 states where it operates Blue Cross plans. The report concluded that 70% of small businesses would experience higher health insurance premiums if the Democrats' health plan passes.

For the average small employer in New York City, the increase in premiums would be modest — just 6%. But in Franklin County, Ohio, a typical small business would be hit with an 86% increase. Similarly sized businesses in Louisville, Ky., and Richmond, Va., would see their premiums go up 20% and 25%, respectively.

These findings align with the results of a different study, produced by Blue Cross Blue Shield and the consulting firm Oliver Wyman. It estimated that the average small business would experience a 19% jump in premiums within the first five years of ObamaCare's passage.

A third study, from America's Health Insurance Plans and PricewaterhouseCoopers, found that the reform bill approved by the Senate Finance Committee would result in a 28% increase in premiums for firms with fewer than 50 workers by 2019.

Simply put, the Democrats' reform plans would raise the cost of insurance for small businesses. A quick look at the various elements of their legislative package shows why.

For starters, the Democrats' proposal would require every insurance policy to cover a minimum set of benefits, even if the customer doesn't want or need them. At the state level, such benefit mandates can increase the cost of a basic insurance plan by 20% to 50%.

Why? Insurers price their products based on how much they might have to pay out in claims. The more treatments an insurer is on the hook for, the more costly it is to cover each customer, and therefore the higher the premium.

The Democrats' package would also institute a federal "guaranteed-issue" law, which would prohibit insurers from denying coverage to customers based on pre-existing conditions.

This reform is well-intentioned. But it ensures that many people will wait until they get sick to buy health insurance. Insurers' risk pools will dry up until only those with chronic health problems remain. Companies will respond by jacking up premiums. Indeed, states that have implemented guaranteed-issue laws have seen premiums jump 227%.

Of course, rising health-insurance prices hurt all employers — big and small. But the bigger ones have the luxury of spreading those costs among many workers. They can also use their purchasing clout to negotiate lower rates with carriers.

Small businesses don't have these advantages. That's why, on average, they pay 18% higher premiums than their large counterparts, according to the Commonwealth Fund.

Even without the Democrats' "reforms," small-business health premiums were expected to go up, on average, by 15% over the next year. And to add insult to injury, the House would also impose a 5.4% surtax on individuals with annual incomes of more than $500,000 and families of more than $1 million.

The tax would not be adjusted for inflation, so more and more small-business owners would be ensnared by it each year.

Managers would likely compensate for these new costs by discontinuing health benefits, cutting wages, holding off on new hires or even laying off workers. Can the Democrats' efforts really be called "reform" if they'd leave workers and businesses alike worse off?

The administration has dismissed accounts critical of its health reform plan out of hand. But the facts don't lie. The Democrats' reform package will make health insurance more expensive for small firms. If the president and his congressional allies are serious about defending the interests of small businesses, they need to get a new plan.

Sally C. Pipes is president and CEO of the Pacific Research Institute and author of The Top Ten Myths of American Health Care <http://www.amazon.com/Top-Myths-American-Health-Care/dp/1934276111/

House Health Reform Bill Includes Public Option

Pelosi starts clock on House health bill By: Patrick O'Connor and Chris Frates October 29, 2009 11:01 AM EST

House Speaker Nancy Pelosi unveiled a $894 billion health care bill Thursday that would extend coverage to 36 million Americans through a mix of subsidies, tax incentives and penalties on individuals and small businesses, but the final package falls short of the more liberal vision of a public health insurance option. Party leaders would like to start debate on the bill next week and hope to have a final vote before Veteran's Day on Nov. 11. The long-awaited introduction of a combined House health care bill produced few major surprises. After weeks of public hand-wringing, leaders – and party liberals – bowed to political reality by allowing doctors and hospitals to negotiate their rates with the government under the public plans. Unveiling the bill at the Capitol, Pelosi said the bill would meet the goals of “affordability of the middle class, security for our seniors, responsibility to our children. It reduces the deficit, meets President Obama’s call to keep the costs under $900 billion over 10 years and it insures 36 million more Americans.” “The bill is fiscally sound, will not add one dime to deficit as it expands coverage, implements key insurance reforms and promotes prevention and wellness across the health system,” Pelosi said. The bill would cut the deficit by about $30 billion over the next 10 years. Pelosi, however, backed down from a deal granting liberals a vote to establish single-payer government-run health care. She cut the deal with New York Rep. Anthony Weiner to break a last-minute logjam on the Energy and Commerce Committee. But, in the end, party leaders were concerned the final cost would be astronomical and the vote would fail to garner votes from even half the caucus. The legislation would require health insurers to offer broader coverage and end practices that discriminate against higher-risk individuals. It would also establish a national insurance exchange with subsidies to lower- and middle-income households to make coverage more affordable. The Congressional Budget Office offered Pelosi and her team some good news and some bad news. The good news is that the bill shouldn’t add to the deficit over the first decade after its enactment. The bad is that the legislation is projected to create deficits over the second five years, a fact that should give budget hawks plenty to worry about. Pelosi’s decision to strip a $245 billion package of doctors’ payments also threatens to anger party moderates. The so-called “docs’ fix,” which would fill a long-standing shortfall under Medicare reimbursement rates, would put the overall cost of the bill well over $1 trillion and create more than $200 billion in red ink for the federal government over the next 10 years – two big “no-nos” from President Barack Obama’s perspective. The bill should cause plenty of headaches for the industries impacted. The legislation imposes as much as $150 billion in Medicare cuts on the prescription-drug industry – almost double the $80 billion cuts in the Senate bill. It imposes a 2.5 percent tax on medical device manufacturers, a quietly influential force on Capitol Hill, And health insurers, who have already agreed to end many of the practices banned by the bill, would have to compete with a government-run insurance vehicle that would put pressure on them to lower premiums. In addition, businesses with a combined annual payroll exceeding $750,000 will be forced to pay penalties for its uninsured workers. As expected, the House bill generates most of its income by imposing a graduated surtax on married couples who make more than $1 million and individuals whose adjusted gross income exceeds $500,000. The initial income thresholds were $350,000 for couples and $280,000 for individuals. Democrats leaving a meeting with their leaders Thursday morning sounded bullish about the prospects for the vote. "I think it's probably going to be our best-faith effort at health reform in the House," said first-year Virginia Rep. Gerry Connolly. "I'm looking forward to being supportive." Congressional Democrats are now calling on Obama to put his finger on the scale. "I guess the time has come for the President of the United States to get in here a little bit,” Weiner said after emerging from a closed-door caucus meeting Thursday. “I understand the idea of letting the legislature work its will, but unless we have the president in there putting his finger on the scale and his hands on the shoulders of some of my colleagues we are not gonna be successful with our red-zone offense." Jonathan Allen and Jake Sherman contributed to this article.

© 2009 Capitol News Company, LLC

Senate Health Reform Bill will have Public Option

From Bloomberg.com....

Reid Backs Health-Care Public Option, Letting States Opt Out

By Laura Litvan

Oct. 26 (Bloomberg) -- Senate Democratic Leader Harry Reid announced his support for establishing a government-run health- insurance program that would allow states to opt out.

Reid said the so called public option with the opt out provision is the “fairest way to go.”

Reid, speaking at a press conference in Washington, said he’ll send health-care legislation to the Congressional Budget Office today for a cost estimate.

The Nevada Democrat said that even though Senator Olympia Snowe, the only Republican to vote for a health-care bill, opposes the public option, he still hopes to get her vote.

Reid also said non-profit health-care cooperatives will be included in the legislation.

To contact the reporter on this story: Laura Litvan in Washington at llitvan@bloomberg.net

Senate Finance Rejects Public Option

Fate of Government-Run Health Insurance May Rest in Obama's Hands

Once touted by the president as essential in "keeping insurance companies honest," the so-called "public option" was blasted by Senate Republicans and moderate Democrats in the Senate Finance Committee on Tuesday.

FOXNews.com

Wednesday, September 30, 2009

http://www.foxnews.com/politics/2009/09/30/fate-government-run-health-insurance-rest-hands-obama/

The fate of a government-run health insurance plan may rest in President Obama's hands after the Senate Finance Committee rejected amendments that would include the so-called "public option" in its version of health care reform legislation.

Liberal Democrats failed twice on Tuesday to include a government-run insurance option in the legislation before the committee, the last of five congressional panels completing work on the president's top domestic priority.

Once touted by Obama as essential in "keeping insurance companies honest," the government plan was blasted by Senate Republicans and moderate Democrats, some of whom argued it would lead to a single-payer system.

The vote to strike down two separate amendments underscored the disagreement among Democrats over the necessity of a public option. Whether Obama will continue to fight for it remains to be seen.

The first amendment, proposed by Sen. John D. Rockefeller of West Virginia, was rejected 15 to 8. The second, penned by Senator Chuck Schumer of New York, was defeated 13 to 10.

Rockefeller had proposed a plan modeled on Medicare, the federal health care program for senior citizens, in which the government would set what it pays doctors, hospitals and other medical providers. Schumer proposed a government plan that would look more like a private insurance company and negotiate payment rates with providers.

Sen. John Ensign, D-NV, was quick to pounce on Rockefeller's amendment, arguing that his idea for a public option would deny doctors participation in Medicare for two years if they choose not to participate in a new government program.

Others, including Sen. Kent Conrad, D-ND, who has crafted an alternative plan that would set up a series of non-profit health care cooperatives, blasted Rockefeller's plan, saying, "The devil is in the details." He said if the amendment is implemented, "every major hospital goes broke."

The White House has been backtracking on its commitment to a public option. Obama made "universal health care" a centerpiece of his presidential campaign, but he later said a government-run program was not essential to reform.

"The public option, whether we have it or we don't have it, is not the entirety of health care reform," the president said at a town hall meeting in Colorado on Aug. 15. "This is just one sliver of it, one aspect of it."

Health Secretary Kathleen Sebelius has said that the public option "is not the essential element" and has suggested that non-profit cooperatives would be a viable alternative.

Supporters of a government-run plan have vowed to keep up their fight as the bill moves toward the Senate floor, and then to negotiations with the House. Democratic leaders in both chambers are pushing for floor votes in the fall.

House Speaker Nancy Pelosi, a strong supporter of a government plan, said Tuesday there's no rush on passing a House bill, especially since the legislation won't take effect until 2013.

"I believe we will have a public option in our bill," Pelosi said during a briefing Tuesday with reporters.

But senior Senate Democratic aides told FOX News that Majority Leader Harry Reid, D-NV, will not include a public option in a health care reform bill he will create once the Finance Committee completes its action this week.

After shooting down the two amendments, the committee will reconvene Wednesday to debate a number of other important issues in health care legislation, including thorny issues like abortion and insurance coverage for illegal immigrants.

FOX News' Trish Turner and the Associated Press contributed to this report.

Senate Finance Committee's "America's Healthy Future Act"

Yesterday, Senator Baucus released his bill on reforming health care. The bill does not contain a government-run public option. This is a step in the right direction!

However, this legislation will be modified and changed as it moves through Congress. CAHR members need to be aware that the Committee is still considering "trigger" provisions that create a new government plan based on affordability. We continue to strongly oppose the inclusion of any government plan no matter how it is structured.

Also, there are some new insurer fees and excise taxes in the proposal that are problematic and would increase the cost of insurance for employers and employees. We will share information about these provisions with you soon.

Look for a new Action Alert to arrive in your mailbox soon!

CAHR Expands to 65 Members!

In the past weeks we've added 15 new members. Check out our complete membership list below to see all the chambers across the country united against a government-run public option.

Albany Area Chamber of Commerce
Albany-Colonie Regional Chamber or Commerce
Androscoggin County Chamber of Commerce
Ashland Area Chamber of Commerce
Blair County Chamber of Commerce
Buffalo Niagara Partnership
Camden County Chamber of Commerce
Chamber Colorado Springs
Chamber of Commerce of Southwest Indiana
Chamber of Southern Saratoga County
Charleston Metro Chamber of Commerce
Columbia Montour Chamber of Commerce
Columbus Area Chamber of Commerce
Daytona Beach/Halifax Area Chamber of Commerce
Detroit Regional Chamber
Eau Claire Area Chamber of Commerce
Erie Regional Chamber and Growth Partnership
Exton Regional Chamber of Commerce
Fond du Lac Area Chamber of Commerce
Fort Collins Area Chamber of Commerce
Fox Cities Chamber of Commerce & Industry
Grand Rapids Area Chamber of Commerce
Greater Cedar Valley Alliance
Greater Cheyenne Chamber of Commerce
Greater Columbia Chamber of Commerce
Greater Indianapolis Chamber of Commerce
Greater Lafayette Chamber of Commerce
Greater Lehigh Valley Chamber of Commerce
Greater New Haven Chamber of Commerce
Greater Oklahoma City Chamber of Commerce
Greater Pittsburgh Chamber of Commerce
Greater Rome Chamber of Commerce
Greater Shreveport Chamber of Commerce
Greater Spokane Incorporated
Greater Woodland Park Chamber of Commerce
Green Bay Area Chamber of Commerce
Harrisburg Regional Chamber
Harrison County Chamber of Commerce
Harrisonburg-Rockingham Chamber of Commerce
Jefferson Chamber of Commerce
Kalamazoo Regional Chamber of Commerce
Lansing Regional Chamber of Commerce
Louisiana Association of Business & Industry
Lubbock Chamber of Commerce
Lynchburg Regional Chamber of Commerce
Macomb County Chamber of Commerce
MetroHartford Alliance
Metropolitan Milwaukee Association of Commerce
Michigan Chamber of Commerce
Middlesex County Chamber of Commerce
Monroe Chamber of Commerce
Natchitoches Area Chamber of Commerce
Northern Kentucky Chamber of Commerce
Pensacola Bay Area Chamber of Commerce
Rochester Business Alliance
Saint Paul Area Chamber of Commerce
Salina Area Chamber of Commerce
Salt Lake Chamber
Savannah Area Chamber of Commerce
Springdale Chamber of Commerce
St. Tammany West Chamber of Commerce
Temple Chamber of Commerce
Vail Valley Partnership
Warren County Regional Chamber of Commerce
Williamsport/Lycoming Chamber of Commerce

CAHR Reaches 50 Members!

Below you will find a complete list of our coalition partners in the fight against the government-run public option. Thanks to all of you for your support.

Please feel free help us spread the word to other chambers across the country.

Albany Area Chamber of Commerce
Albany-Colonie Regional Chamber or Commerce
Androscoggin County Chamber of Commerce
Ashland Area Chamber of Commerce
Blair County Chamber of Commerce
Chamber of Southern Saratoga County
Daytona Beach/Halifax Area Chamber of Commerce
Detroit Regional Chamber
Eau Claire Area Chamber of Commerce
Erie Regional Chamber and Growth Partnership
Exton Regional Chamber of Commerce
Fond du Lac Area Chamber of Commerce
Fort Collins Area Chamber of Commerce
Grand Rapids Area Chamber of Commerce
Greater Cedar Valley Alliance
Greater Cheyenne Chamber of Commerce
Greater Columbia Chamber of Commerce
Greater Indianapolis Chamber of Commerce
Greater Lehigh Valley Chamber of Commerce
Greater New Haven Chamber of Commerce
Greater Oklahoma City Chamber of Commerce
Greater Pittsburgh Chamber of Commerce
Greater Rome Chamber of Commerce
Greater Shreveport Chamber of Commerce
Greater Spokane Incorporated
Greater Woodland Park Chamber of Commerce
Green Bay Area Chamber of Commerce
Harrisburg Regional Chamber
Harrison County Chamber of Commerce
Harrisonburg-Rockingham Chamber of Commerce
Kalamazoo Regional Chamber of Commerce
Lansing Regional Chamber of Commerce
Louisiana Association of Business & Industry
Lubbock Chamber of Commerce
Lynchburg Regional Chamber of Commerce
Macomb County Chamber of Commerce
MetroHartford Alliance
Michigan Chamber of Commerce
Natchitoches Area Chamber of Commerce
Northern Kentucky Chamber of Commerce
Rochester Business Alliance
Saint Paul Area Chamber of Commerce
Salina Area Chamber of Commerce
Salt Lake Chamber
Savannah Area Chamber of Commerce
St. Tammany West Chamber of Commerce
Temple Chamber of Commerce
Vail Valley Partnership
Warren County Regional Chamber of Commerce
Williamsport/Lycoming Chamber of Commerce