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NRCA calls on Congress to revisit health care reform issue

NRCA called on Congress to renew efforts to repeal or make major modifications to the 2010 health care law in the wake of the U.S. Supreme Court's 5-4 decision upholding the law. The court ruled the individual mandate to purchase government-approved health insurance does not fall within Congress’ power to regulate interstate commerce, as supporters have argued, but that it is constitutional within Congress' power to levy taxes.

NRCA opposes the law because of concerns it will harm employers, particularly small businesses, and workers by imposing new government mandates and hundreds of billions of dollars in taxes on employers and individuals. The resulting increase in health care costs and continued uncertainty over the law's full implementation in 2014 is stifling economic growth and job creation.

Passage of legislation to expand access to affordable health care for small and mid-sized businesses has been a priority for NRCA for more than a decade. NRCA supports reforms that address the rising cost of health care through greater competition, expanded consumer choice and increased transparency in private markets.

NRCA believes Congress must revisit this issue and adopt market-oriented reforms that implement effective solutions to address health care costs. Republican presidential nominee Mitt Romney and Republican leaders in Congress have vowed to repeal the health care law in 2013. Additionally, a substantial number of Democrats have voted this year to repeal certain provisions of the law.

Congress should begin laying the foundation for health care reform by passing several bills that repeal provisions of the law that are particularly onerous for small and mid-sized businesses.

NRCA supports the American Job Protection Act (H.R. 1774/S. 20), legislation to repeal the mandate that will require, beginning in 2014, employers with 50 or more "full-time equivalent" employees to provide government-approved health insurance or pay a penalty to the Internal Revenue Service. By mandating expensive minimum benefits and failing to address the rising cost of health care, the law will increase costs and reduce choices for employers. The effect of the mandate may force many employers to drop coverage rather than expend additional resources to ensure compliance with the complex employer requirements. True reform must provide flexibility and innovation rather than government mandates that impose "one-size-fits-all" coverage on employers and workers.

NRCA also supports legislation (H.R. 1370/S. 1049) to repeal the health insurance tax included in the law. The burden of this tax, scheduled to take effect in 2014, will be borne almost solely by small and mid-sized businesses that purchase coverage in the fully insured market. This tax is estimated to cost $87 billion over 10 years by the Congressional Budget Office (CBO). A former CBO director estimates the effect of the tax could be as much as a 3 percent increase ($5,000) in premiums for a family of four over 10 years.

NRCA urges members of Congress to approve these bills as the first steps toward true reform of private markets to effectively expand health benefits for small and mid-sized employers. For more information, please contact Duane Musser, NRCA's vice president of government relations, at (202) 546-7584 or dmusser@nrca.net.

6/29/2012  

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