Small Businesses Balk at Health Care Plan

(CBS)  Since 1999, health insurance premiums have increased 120 percent - four times as much as wages. About 1.5 million American families lose their homes to foreclosure every year because of sky-high medical bills.

President Barack Obama wants comprehensive reform this summer. As he put it today, "It's time for us to buck up." And there are a lot of bucks at stake.

Several proposals are making their way through the House and Senate this week, but as CBS News White House correspondent Chip Reid reports, there's growing opposition from small business owners, who'd pick up a big part of the tab.

The president praised Congress today for taking their first small steps toward health care reform - then pleaded with them to pick up the pace

"We can't kick the can down the road any longer. Deferring reform is nothing more than defending the status quo," he said.

Democrats on a key Senate committee passed the first piece of their reform plan today, with no Republican support. Yesterday in the House, Democratic leaders introduced their legislation.

Both plans would extend health coverage to the vast majority of the 50 million uninsured; require those without insurance to buy it; and give subsidies to low-income Americans to help them afford it

"Both proposals will offer stability and security to Americans who have coverage today, and affordable options to those who don't," Mr. Obama said.

The White House says most Americans would be winners. But try telling that to Chris Warner who owns a small mountain climbing business

He's climbed the two tallest mountains in the world, Everest and K2, but says surviving health reform could be his toughest challenge yet.

"We really could find ourselves in a position where a lot more small businesses are going to go bankrupt," he said.

Warner worries about getting hit by a double whammy

First, under the House bill, businesses with payrolls of more than $400,000, like Warner's, must either provide health insurance for their employees or pay a penalty of 8 percent of their payroll.

That could add over $100,000 to Warner's tax bill.

"Do we do it by not giving our employees a raise, not reinvesting back in our company? It's just that classic Catch-22 for small businesses," Warner said.

The second part of the double whammy is a surtax of at least 1percent Warner would have to pay because his business earnings exceed the threshold of $280,000 a year, even though he personally takes home much less than that

"Is the greater good for me to take that capital and pay taxes or is it for me to take that capital and create more jobs," he said.

In an interview today with CBS News medical correspondent Dr. Jon LaPook the president said the money for health care reform has to come from somewhere and he prefers getting it from those with at the high end of the income scale.

"If you can afford it, either give your employees health insurance, or pay into the pot so that we're not subsidizing it," the president said.

[dmthom]

I think food is more important than healthcare, so when is the government going to buy my groceries?

[inxs123]

Since lefties love the government so much we should do 2 things. First require the Obama's and all of Congress to require them sign on to this monstrosity, including Ted Kennedy and we should socialize the legal profession, to reduce costs and, of course, improve quality. Since lawyers are owned by the Dems they should love the idea. Quality legal care for all, they would get LOTS of customers and they would be paid promtly and at greatly reduced rates from the socialist in congress. What do you think?

[jsd330]

Hey people want to cap doctors wages or make them government employees, Lawyers are worse then insurance companies, so we might as well come up with a government legal plan. Obama says TORT reform is not an option, so this should work, government legal care.

[sjc_1]

Small business claims that they would like to provide health care, but it is too expensive. Now this is their chance to walk the talk. A level playing field says ALL businesses must provide health insurance. Since that will be the case it will be up to how well you can manage your company. No more balancing the books off the backs of the workers, at least not when it comes to health care.

[jsd330]

According to the bill from congress, you will have no choice. You can keep your exsisting plan, but can only change to the government plan. You won't be able to buy individual health insurance from a differen't insurer. What happened to the choice Obama promised? You can check the article at IBDeditorials.com

[sjc_1]

Tort reform is a red herring. Malpractice court awards total less than 1% of the cost of health care. If you allow bad doctors to get away with harming people, reckless incompetence will just be a very small cost of doing business and harm.

[jsd330]

Prove your numbers, or did you pull them out of the air. You're probobly an ambulance chaser.

[mikeoliphant]

Without TORT REFORM, medical provider costs will never drop. We are always screaming about health care reform. Shouldn?t TORT REFORM be included? Studies show with http://www.healthinsurancetexas.biz and http://www.dentalinsuranceutah.net that liability insurance costs are approaching nearly half of the operating expenses for specialty care physicians, units and facilities. Humana health plans state that their costs of medical liability and defensive medicine accounts for nearly 10 cents out of every premium dollar collected. Compare that to Humana?s reported pharmaceutical claims of 15 cents out of every premium dollar collected. Or better yet, 21 cents out of every premium dollar collected is paid back to physicians for physician treatments.

[jsd330]

mikeoliphant you hit the nail on the head, without TORT reform, you will never see health care costs drop. But Obama and the rest of the Dems say it is not an option. Thats why physicians order so many more tests and procedures, to cover themselves from law suits. We wouldn't want the lawyers to have to give up their golden goose, let everyone else pay more taxes or take a cut in their income. And then of course you have people like skyk-2009 that want national health care as long as somebody else pays the majority of the bill for them. If you look at other countries with universal health care, I would be willing to bet there is no such thing as malpractice suits.

[gold_standard]

I would rather live in a free country than in a country where the government makes me do what they say is good for me. You can have all the national socialist programs if you want them, but don't say we live in a free country because that is a lie.

In a free country, no one can confiscate your money and property to spend on what they think is best--especially not the government. Freedom means freedom from government oppression and force. When people lose their freedom, it is because a government takes it away. No one else can take your freedom.

Cradle to grave socialism may provide a measure of material security, but it is not freedom. The government regulates your life, spends your money, gives you what they decide you should have and in the end you are no longer free. You can go that route if you want to, but at least be honest and admit you gave up your freedom by choice.

[CitizenMikeM]

There are no free countries--we in this country just have a longer leash than most.

[STBY21]

What effect will this have on large insurance companies such as United Healthcare and Blue Cross? If the government pushes this through, without reading it....again, they are setting themselves up to have a nationwide group insurance plan like medicare. This is something they have not allowed insurance companies to do which drives up the cost for others.

[smoknmirrors]

The man needs a good tax accountant. Whoever is doing his now needs to be fired. That would solve three problems. It gets him better advice, lets him keep more of his money and it eliminates one employee for which he must provide health care insurance. Businessmen like to keep as much money as possible; giving employees raises, providing health coverage, allowing rest breaks, and, in this particular case, replacing the ropes when they fray, are all detriments to the primary goal of his acquiring wealth. Too bad slavery died.

[sjc_1]

At $2.5 trillion in a $12 trillion economy, something MUST be done about health care costs. Health care costs have risen 120% in just the last 10 years. At that rate no one will be able to afford health care and the country will collapse.