U.S. Chamber Expresses Severe Disappointment with Irresponsible House Health Care Legislation

WASHINGTON, D.C.—U.S. Chamber of Commerce Executive Vice President of Government Affairs Bruce Josten issued the following statement expressing severe disappointment with the health care bill introduced today in the House:

"The Chamber is very disappointed to see that the latest House bill includes many provisions that are not consistent with our shared goals of reducing costs and increasing access to health care without negatively effecting businesses.

First and foremost, employer mandates, including requirements to pay-or-play, are not the answers to our nation's health care challenges. Employers will be required to either provide a government-mandated level of health care coverage regardless of the employer's ability to pay or face a penalty of 8% of payroll. This will result in job loss and lower wages, reduce flexibility and choice, and raise the cost of providing benefits to employers. Preserving employer flexibility is critical for ensuring quality care.

Second, the inclusion of a government-run public plan combined with the impact of Medicare, Medicaid, and other public plans would directly result in a cost shift to other private payers and do nothing to address the underlying problems to make coverage affordable. A government-run plan cannot operate on a level playing field and compete fairly. Market-driven health reforms are the best approach to reducing costs, promoting efficiency, wellness, and quality of care. Whether reimbursement rates are tied to Medicare or are "negotiated" by the Secretary of HHS, the fundamental reality remains that the public plan would have devastating effects on the rest of the market and the government would still be setting prices that would be below actual market rates.

The wild spending in this legislation is financed through a vast array of new taxes at a time when the economy is still fragile and the employer community is struggling to create and retain jobs. We strongly oppose the $500 billion surtax that will devastate many small businesses. This tax surcharge would raise the effective income tax rate for many taxpayers and business owners who are structured as S-Corps, that pay their taxes at individual tax rates. The excise taxes on medical devices and the world-wide interest allocation to fund this legislation should not be included. We are also disappointed at the decision to use underhanded tactics that add $250 billion to the deficit to change Medicare reimbursements, thus making the legislation appear to cost much less than it really does.

The U.S Chamber of Commerce stands ready to work with Congress and the Administration to pass health reform legislation. However, the proposals to date do not represent bipartisan, pragmatic, or responsible legislation, and are seriously flawed."

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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