NAMM Members - Take NOTE - Health Insurance Reform

Recently, NAMM issued an update about the current healthcare insurance legislation with a link to some tools for folks to send a message directly to their member of Congress expressing concern for some potentially burdening mandates for small businesses that may find their way into the law.

This communication hit a nerve with many NAMM Members and it isn’t surprising considering that the current health insurance reform debate has been one of the most rigorous in recent history and it has been a confusing, polarizing and illuminating issue for all of us.

I’d like to clear up a few things:

NAMM is not against the current reform effort and has worked for reform efforts for many years to achieve more health coverage access and competition for small businesses.  We went through a period of pursuing options for trade associations to offer healthcare insurance with the same benefits that large corporations have. Association health care insurance legislation came up almost every year during the Bush years, and every year, it was defeated.  But we slogged on.  Over the years, NAMM has attempted to guide its members to more competitive health insurance options through a member program and it has also helped members access to insurance programs in their city and states.

The health insurance reform opportunity before us now is historic – and seriously needed.  I believe reform will be achieved and the interests and needs of small business will be included if we communicate our concerns for certain ideas that continue to be floated as the law is debated.

Here are the concerns –

• Employer mandate tied to a punitive pay-or-play:  Recently passed House bill H.R. 3962 combines an employer mandate with a pay-or-play tax.  Aside from the prescriptive tests a employer who provides coverage must meet, the payroll tax penalties threaten both those who do and do not provide coverage.
• Surtax:  Seventy-five (75) percent of small businesses are structured as pass through entities and pay their business taxes at the individual level.  More than one-third of small businesses employing 20 to 250 employees would face the tax. The tax is not indexed for inflation; the effect of the tax will creep downward, making more and more businesses vulnerable to a tax increase.
• Public Option:  With proper reforms, the private market can be held accountable to provide greater competition and lower-cost solutions for small businesses and their employees. Small businesses need more, not fewer, affordable health insurance options.
• Large Benefit Package and Mandates:  Small employers typically pay 18 percent more for their healthcare. Small employers need a guarantee that plans offered in an exchange will be less costly, not more expensive, than what they are paying today.
• And: Provide equity in tax treatment for the self-employed and improve affordability and providing for sustainable cost containment by eliminating wasteful spending in the overall healthcare system.

NAMM is working for greater equity, access and economic sustainability for health insurance for its Members.  I urge you to contact your member of Congress and “let your voice be heard.”

Mary