Senate Health Care Bill Misses The Mark, U.S. Chamber Says

The U.S. Chamber expressed disappointment with a Senate health care reform bill that cleared a weekend procedural vote along party lines, 60-39, ensuring that the bill will be debated and voted on.

"We acknowledge that there are improvements in this bill from other health care reform bills, including provisions that offer more choice and competition,” says Bruce Josten, Chamber executive vice president for Government Affairs. "But this bill still contains a government-run health plan and an onerous employer mandate; it taxes working Americans, slashes Medicare, and would still leave 24 million Americans without health insurance, according to the Congressional Budget Office."

In addition to creating a government-run health plan and cutting Medicare spending, the Senate bill would tax high-value insurance plans, raise Medicare payroll taxes, and expand Medicaid while subsidizing lower-wage Americans.

Beginning in 2014, firms with more than 50 workers would have to offer government-approved coverage or pay a $750 penalty for each full-time employee if just one employee were to receive a government subsidy to purchase coverage.

The bill also contains a Chamber-opposed provision that would allow certain employees to demand a cash-out from their employer’s health plan. The option of a cash-out would encourage workers to abandon their employer’s plan in favor of insurance available on a new government-run exchange created for individuals and small businesses.

The Congressional Budget Office estimates that the Senate bill would extend health coverage to 31 million more Americans and cost $848 billion over 10 years. Increases in taxes are expected to cover the costs and ultimately reduce the deficit by $130 billion over 10 years.

The House narrowly passed its own health care reform bill on November 7 by a 220-215 vote, with just one Republican supporting the bill. The bill would cost more than $1 trillion over 10 years and extend insurance to 36 million more Americans. It is predicted to reduce the deficit by $104 billion over 10 years.

The Chamber and other business organizations have formed a national coalition, Employers for a Healthy Economy, to contest the health care proposals being considered by Congress and to protect employer-sponsored health care, which provides coverage for more than 160 million Americans.

Learn more about Employers for a Health Economy.

Contact your elected official and tell Congress to oppose flawed health care proposals.