U.S. Senator Fears Healthcare Bill Could Be “Fundamental Threat” to Small Businesses
March 19th, 2010 by EditorAs President Obama’s healthcare bill nears its final stages and could possibly be passed as soon as this weekend, one U.S. senator has said he fears it could have a negative impact on small businesses across the nation.
“I’m real concerned about this bill because of a fundamental threat it would make to small businesses,” said Sen. David Vitter (R – La.).
Vitter, who addressed a group of manufacturers related to the building industry this week, explained that the bill mandates that small employers would have to provide healthcare coverage to their employees—or pay a fee of $750 per employee per year to the government. However, the national average for costs of healthcare for small businesses per employee is $6,100, according to Vitter.
“Millions of employees are going to be dumped off coverage they’re reasonably satisfied with,” he said.
Vitter predicted the bill will pass at least before the Easter recess.
Vitter addressed the joint 2010 Spring Meeting and Legislative Conference of the Window and Door Manufacturers Association (WDMA), the National Lumber and Building Material Dealers Association, and the North American Building Material Distribution Association.
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I think this may be true, just not for the small businesses, but also for larger businesses. My company currently pays $20,000+ for my insurance (I’m sure it will fall under the “Cadillac Plan”). I fear my company will just decide to take the financial penalty of not providing insurance. You do the math, what’s cheaper, pay $20,000+ to provide the employee insurance or pay the $2,000/per employee penalty for not providing insurance? So, it’s going to turn out that a lot of people that have good plans will then be dumped by their employers and they will be forced into a plan that in all likelyhood is inferior to the one they currently have. Do you think your representative has looked that far down the road?