health insurance reform obama
The health insurance requirements could make a radical change if a bill for health care reform ever land on the desk of President Barack Obama, and that could mean costly changes for businesses in Maryland.
The House and Senate versions of the bill differ in several key areas, but both require some sort of mandate from employers, business owners who require certain to provide health insurance to full-time employees and would require that individuals have health insurance. Businesses and individuals who do not follow the rules to pay fines for not having coverage.
"For many, many companies, the employer mandate will mean new costs in the business, whether the fine or comply, "said Kenneth R. Huber, senior vice president of employee benefits group for PSA Insurance & Financial Services in Hunt Valley.
"I see the economy, and a lot of companies have already cut their expenses, including employees. … They will see a new cost in the same way to all employers look for a new cost. They will have to find ways to deal with it, "said Huber, who advises small and medium enterprises.
Under the House bill, which passed in November, businesses with annual payroll of $ 500,000 or more would be required to offer employees health care coverage. The penalties would start to 2 percent of payroll costs and ramp up to 8 percent if the business has a payroll of $ 750,000 or more.
Under the Senate bill, which was not discussed, however, employers do not have to provide coverage. However, if any employee received government assistance to buy an insurance plan, the company would fined $ 750 for each of their employees. Companies with fewer than 50 employees would be exempt.
Of the more than 119,000 businesses in Maryland, 74 percent have fewer than 50 employees from time complete. But only 44 percent of firms offer health benefits in 2008, according to the Department of Health and Human Services.
About 56,000 small businesses in Maryland, you may qualify for tax credits of up to 50 percent of a health insurance premium under the health reform. Insurance Reform expand Maryland Health Partnership, which provides businesses with eight fifty-eight full-time employees the same benefit if they have not offered insurance in the past year and their employees earn less than $ 50,000 on average. Under the reform, a company that employs up to 25 people, with average salaries of $ 40,000 would qualify for credits.
The reform would also provide coverage to people with pre-existing conditions. But the small group plans offered in Maryland – for companies with 2 to 50 employees – Already do.
"Our concern is that Maryland already imposes more mandates in the small group insurance," said Kathleen Snyder, president and CEO of the Maryland Chamber of Commerce, which opposes the health care Bill's house.
"We are concerned that Maryland will return and add to a plan rich federal government, which add costs to insurance companies [and] employers, "he said.
Vincent DeMarco, president of the citizens Maryland 'Health Initiative, said he hoped that the reform of health care becomes a reality. His group has pushed for universal health care in Maryland through a payroll tax of 2 per cent of companies.
"We would like to make our proposal of how the House did, which is to require all businesses to provide health care and charge an assessment if they do, "he said.
"If something like happens, that would make it unnecessary for us to do many things that were going to do, "said DeMarco." We are willing to adapt our proposal to theirs to finish the job here in Maryland. "
He said that requiring all businesses to provide health care would reduce the hidden costs premiums to cover insurance. But both Huber and Snyder said he is unsure whether the health reform really lower costs.
"At the end of the day, both of these bills are mainly health insurance reform and expanding coverage, and there is much that I think will have any significant impact on bending the cost curve, "Huber said." Nor is there anything in either of these bills that will significantly improve care. "
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