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President Obama has mobilized the grass-roots supporters that helped elecgt him to lobby for his vision of healthhcare reform, which includes offering Americans a government-ru n health plan as an alternative to private insurance. A coalitiom of labor unions and progressive organizations plans tospend $82 milliob on organizing efforts, advertising, researcu and lobbying to support the Obama Business groups, meanwhile, mostly are working behind the scenes to shape the legislation.
Although they have serious concerns abougt some of theproposals — including the publicd plan option and a mandate for employersd to provide insurance — few are tryin g to block health care reform at this point. The cost of healthb insurance has become so burdensomee that something needs tobe done, they agree. “Nobodh supports the status quo,” said Jamesa Gelfand, the ’s senior manager of health policy.
“We absolutely have to have For mostbusiness groups, that means reining in healthu care costs and reformint insurance markets so that employers have more choicesz in the types of plans To achieve those goals, however, businessew might have to swallow some bitter An employer mandate tops the list of concerns for many business groups, just as it did when Bill Clinton pushed his healthj care reform plan in the 1990s. The Senate bill might include a provisionb that would require employers to eitherd provide health insurance to their employees or pay a fee to thefederal government.
Some small-business ownerxs don’t have a problem with that, includinyg members of the MainStreet Alliance, which is part of the coalitioj lobbying for the Obama plan. “Thre way our system works now, where responsible employers offer coverage andothersw don’t, leaves us in a situation with an unleveo playing field,” 11 alliance members said in a statement submittedr to the Senate Finance “If we’re contributing but other employers that gives them a financiao advantage over us,” the statement “We need to levelp the playing field through a system where everyond pitches in a reasonable amount.
” But most businesd lobbyists contend that employers who can affordc to provide health insurance do so alreadg because it helps them attract and keep good Businesses that don’t provide healthg insurance tend to be “marginally profitable,” said Dennu Dennis, senior research fellow at the NFIB Research Imposing a “play-or-pay” insurance requirement on these businessexs would cost the economy more than 1.6 million according to a study. Tax creditsx could offset some of the costs for providing this but Gelfand said the credits that are undee discussionare “extremely limited.
” Congress also could exempt some small businesses such as firms with less than $500,000 in annuak payroll — from the employee mandate. But many business groups see this proposalk as an attempt to splitt thebusiness community, not as meaningful “We oppose small-business carve-outa because they make it easier for Congress to apply mandatesa against larger employers,” said Neil vice president and employee benefits policy counsel of the Nationakl Retail Federation. “It’s also easy for Congress to come back and try to applu the mandateagainst ever-smaller employers.
“No mattefr how good the surrounding health care a bill containing an employer mandate wouldc be too high a price to pay for Trautwein said. Public plan or market reforms?
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