Legislative Affairs
Public Hearing on Health Care Proposal
Single Payer Health Care: Serious Consequences for Small Business
Call to Action: Gov. Peter Shumlin is pushing for a single payer healthcare system in Vermont. The Associated General Contractors of Vermont urges serious consideration of the consequences of this proposal. Now, employers have a chance to spread their message about single payer healthcare directly to state lawmakers.
Vermont lawmakers will hold a statewide public hearing, via Vermont Interactive Television, offering citizens a chance to express their opinions about a health care bill proposed by Gov. Peter Shumlin. The hearing is set for March 14, from 6 to 8:30 p.m., and will give people the opportunity to speak at VIT sites in the locations listed below. Driving directions, addresses and telephone numbers for the sites are available at www.vtlink.org.
" Bennington " Brattleboro " Castleton " Johnson " Lyndonville " Middlebury " Montpelier " Newport " Randolph Center " Rutland " Springfield " St. Albans " Waterbury " White River Junction " Williston The Issue: The Shumlin administration has introduced two bills relating to the creation of Green Mountain Care, establishing the health care exchange mandated by the federal healthcare law. The plan will further transition the current system to a single payer model in Vermont over the next 3 years. But many questions are left unanswered and businesses are left with uncertainty about how much of the financial burden they will bear with no apparent cost containment measures.
Phases of the Governors Plan:
1. July 2011 - Creation of a health benefit exchange " Creating an exchange will limit purchasing options " There may be a need to purchase supplemental insurance coverage to ensure adequate benefits " Small businesses may be left to shoulder the costs of this plan
2. 2014 - Employers receive federal tax credits; Medicaid, Medicare and workers comp included in exchange " This relies on future tax relief that may or may not be possible in years to come, risking a liability for tax payers if the federal government cannot support these credits in the future.
" Employers can face penalties if they do not offer insurance or their employees get a subsidy to buy an exchange health benefit plan.
3. 2017 and Beyond - Vermont asks the federal government to transform to a publicly financed exchange " While this transition would no longer link coverage to employer or employment, employers will still be expected to provide a supplemental insurance for their employees because Green Mountain Care will cover only essential health care , not 100% of a patient care.
The Bottom Line: The most talked about solution for funding Shumlins healthcare plan is a payroll tax. A proposal presented to the state suggests that employers will face an 11% payroll tax, while all employees will see an additional 4.5% disappear from their paychecks each pay period.
AGC VT's Position: AGC VT continues to voice strong support for cost containment measures, assuring the affordability and sustainability of the health care system, but strongly opposes proposals that shift more costs on to small business.
How You Can Help: Participate in the public hearing on March 14, from 6 to 8 p.m. at one of the 15 VIT locations offered. Tell Gov. Shumlin and state lawmakers that Vermonts job creators cannot afford single payer healthcare without cost containment; the tough questions must be asked and consequences must be carefully measure.
Date Posted: March 09, 2011
