U.S. Chamber Strongly Objected To Employer Mandate In Proposed Legislation

U.S. Chamber Strongly Objected To Employer Mandate In Proposed Legislation
Johnson Says Proposal 'Bears Almost No Resemblance To The Points Of Consensus Reached In Meetings With Stakeholders'

WASHINGTON, D.C.—In testimony before the Senate Health, Education, Labor, and Pensions (HELP) Committee today, the U.S. Chamber of Commerce's Vice President of Labor, Immigration, and Employee Benefits, Randel Johnson, strongly opposed the employer mandate and the committee's accelerated process.

"The Chamber looks forward to working with Congress on this and other initiatives that will help more individuals, small businesses, the self-employed, and others gain access to the highest quality, most affordable, and most accessible health care possible. However, the proposal being floated is not reform—it would make the system even worse for employers and those who value free market competition. The Chamber urges this committee to reconsider the approach it is taking.

"Moses could change the Nile to run red but we cannot wave a wand and create profits. The payments will come off the bottom line in some way such as lower wages and job loss and perhaps ultimately result in driving the employer out of business.

"While there has been much focus on the so-called government public plan option, I believe, the issue of a new employer mandate, euphemistically called 'pay or play,' has largely been lost in the debate and in the press. This is highly ironic given that this is, let's be clear, a sweeping new burden on employers of unprecedented proportion in the benefits areas.

"After meeting with stakeholders behind closed doors for nearly a year, the committee released a proposal that bears almost no resemblance to the points of consensus reached, which raises significant concerns to the employer community as a whole.

"Rather than focusing on improving quality and lowering cost, the proposal centers on creating new burdens on America's job creators, significantly expanding public programs, and creating a new government-run insurance company.

"With regard to process, I have to note that I was on the Hill when Mrs. Clinton's plan was being considered and she came under much criticism for drafting the plan behind closed doors and then presenting the plan to Congress. However, there were many hearings on that bill and I would argue that it was a model of transparency and a full deliberative process compared to the absurdly accelerated process we are apparently facing now.

"The business community at large is eager to work with Congress to develop a workable product that garners broad bipartisan support, preserves the parts of the system that work, is fiscally responsible, and expands coverage, increases quality, and lowers costs."

Johnson's complete testimony is available at:
/issues/testimony/2009/090611healthcarereform

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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