Rep. Jan Schakowsky: Health care plan will cut costs for small businesses

[babylonsister]

http://www.suntimes.com/news/otherviews/1509200,CST-EDT-open03.article

Health care plan will cut costs for small businesses

April 3, 2009

BY REP. JAN SCHAKOWSKY

Small business owners have joined the chorus of Americans seeking lower health insurance costs and health-care reform. Suffocating under the high cost of providing care to their employees, they are forced to lay off longtime staff, cut or eliminate benefits, or even close their doors. If nothing is done to reform the current system, the cost of health care will increase 20 percent before 2016.

A recent National Small Business Association survey found that while most business owners want to offer health care to their workers, only 38 percent are able to, down from 67 percent in 1995.

One of the most effective ways to contain rising costs without reducing benefits or access to care is to give families and businesses the ability to choose between a public health insurance program and a private insurance company. Such a Medicare-like option would foster competition with private insurers whose premiums and co-payments have soared beyond the reach of many Americans and their businesses.

Offering a choice between a public health-care option and private insurance plans will breed competition. Estimates suggest that premiums for a public health-care option would be at least 20 percent less than the private insurance industry average. As a result, private insurance companies would have an incentive to compete and be encouraged to increase efficiency, while decreasing overhead costs.

Over the past 19 years, small business has been responsible for 93.5 percent of all new jobs, creating nearly 4,000 jobs per day. However, small business job creation has slowed as many entrepreneurs are turning away from the idea of opening their own business because the cost of providing health insurance is too great. The casualties of this retreat are the needed jobs that aren't created in every state and every sector of the economy.

Throughout the country, small businesses are having a hard time now, not only coping with the economic downturn, but trying to compete with businesses in countries with quality public health-care systems. For instance, a small business in Japan, operating with the benefit of a quality public health-care system, spends only 4 percent of its payroll on health care. A similar firm in the United States will spend nearly 13 percent of its payroll on health insurance every year, tying up money that could be spent on hiring new employees or improving products.

At the White House Health Care Summit on March 5, participants discussed a public health-care option that would decrease costs and improve access to care. And President Obama included health-care reform in the federal budget, Blueprint for Change, that Congress voted on Thursday.

Over the next several months, Congress will work to complete the monumental task of reforming our health-care system. If we are successful in achieving the reform that I support, we will grow our economy, and relief will come to the small business community and the millions of Americans who are uninsured.

U.S. Rep. Jan Schakowsky represents Illinois' 9th Congressional District, which covers the Northwest Side and several north suburbs.

[LiberalFighter]

1. It needs to be explained to Schakowsky that no amount of efficiency or reduced overhead costs

will make private insurance cost effective. They are for profit. If they don't charge that extra 30% they couldn't pay their stupid ass executives super high salaries and their stockholders.

And it will be about 30% savings in costs.

[babylonsister]

2. You must have missed this from the OP...

give families and businesses the ability to choose between a public health insurance program and a private insurance company.

[eridani]

6. Fucking stupid. That sets up the public plan for failure through underfunding.

Private health insurance is nothing but legalized theft, and ought to be limited to policies providing for liposuction and private hospital rooms.

[LiberalFighter]

7. Nope! Didn't miss it.

I did catch the part where she thinks private companies would reduce their costs. "Estimates suggest that premiums for a public health-care option would be at least 20 percent less than the private insurance industry average."

I seriously doubt private companies in the business of making a profit would be able to reduce without seriously impacting the executives and stockholders.

I do believe that consumers would be more likely to flock over to the government health care program as it would cost less than the same provided by a private company.

[Merlot]

3. I'm self employed. Will I have the option to choose public health care?

I realize business carry a burden with health care costs. But there are a lot of people who are self employed, small business owners, unemployed, etc. I'd like to know what percentage of the population we are and how these plans they speak of will affect us.

I've heard the plan where everyone is forced to purchase health insurance and those who can't afford it will be given gov't subsidy. How does that work? Can't anyone juggle their books to say they cant' afford it? Will those who can't afford it be given second tier or substandard service?

Not sure that I want gov't assistance for health care. It needs to be the same plan for everyone.

[leftstreet]

4. "second tier or substandard service" will be the motivation for private pay

Much like it is now, really. Just on a larger more 'inclusive' scale. There'll be even more people desperate to avoid the shitty coverage and willing to fork over the monthly premiums for private.

[McCamy Taylor]

5. But free market competition is unAmerican, isn't it?

[truedelphi]

8. K & R for reading later. n/t