Today's New York Post posted an editorial explaining how the healthcare proposals currently in the House of Representatives and the Senate would effect small businesses. Part of the problem with the current proposal is that small businesses would not only be required to pay at least 72.5 percent of insurance premiums for an individual and 65 percent for families, but the healthcare they pay for would have to meet federal guidelines.
According to the article:
"Data from a 2009 Kaiser Family Foundation survey suggest that at least 30 percent of firms with fewer than 200 employees that now offer insurance would fail the test for family coverage, and about 20 percent would fail for individual coverage."
Has anyone stopped to think that if Americans got back in the habit of paying for routine health costs out of pocket and having insurance to cover accidents, serious illness, etc., how much the cost of health insurance could be reduced? In Massachusetts, which has compulsory health insurance, policies that cover only accidents, serious illness, etc. have been declared illegal in the state and have been discontinued. This increases the cost of health insurance for everyone.
The article points out:
"The bill offers a few subsidies to help small businesses pay for insurance. But the credit would cover only half the cost -- and only if businesses agree to comply with a list of government demands on coverage requirements.
"In any case, the subsidy is gradually reduced for businesses that employ more than 25 employees or pay average wages above $20,000 a year. And it only lasts two years -- after that, the business owner is on the hook for the full cost of the expensive coverage."
When you increase the expenses for small businesses, the businesses hire fewer people and unemployment stays high. If you believe that the economy is recovering, the current healthcare bill will end that recovery.
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