Vermont has long been a leader in providing quality health care coverage, and now we have an opportunity as a state to demonstrate how to deliver an affordable and comprehensive universal healthcare system. This system could potentially save Vermonters half a billion dollars a year in overall healthcare costs, which is great news for small businesses.
Currently, it’s estimated that Vermonters spend about $2.7 billion annually on health care premiums and out of pocket costs, and although it seems like a big price tag, the $2-$2.2 billion anticipated cost for Green Mountain Care will be an overall decrease. In addition, taking employers out of the health insurance provision system means we'll no longer need to administer health insurance, reducing our overhead. The implementation of universal healthcare presents us with a unique opportunity to benefit the entire state.
In order to achieve these benefits for small businesses and our employees, however, it’s critical that we find the right balance in the financing plan - one that won’t hurt small businesses like ours or hard working Vermonters.
According to the December 5th VT Digger article that reported a leak from the Governor’s Advisory Council, an 8% payroll tax could be a part of the financing package for Green Mountain Care. While 8% sounds like a reasonable starting point for the conversation about payroll tax contributions, we’re eager to learn more about the details. Specifically, how will the payroll tax be phased in for small businesses that aren’t currently offering a healthcare benefit to their employees? And, given that currently the average employee premium contribution covers about 80% of the cost, we would have serious concerns about any plan that shifted that balance too quickly, hurting working Vermonters. Any eventual cost shift needs to allow time for the benefits of universal healthcare and the cost savings we will see from improved health outcomes to flow to everyone.
These will be important details to clarify and to work on with the legislature once the administration’s proposal is released and no matter what the standard payroll tax rate ends up being.
Just as important as the balance of the financing plan is the coverage it provides. As founding members of Main Street Alliance, we support a plan that restores Vermonters to at least the coverage that was available under our Catamount Health Plan and Dr. Dynasaur and that includes dental and vision. We should not roll back the progress that Vermont has already made on this point and we support those who are calling for a higher Actuarial Value -– the better the policy, the better it is for Vermont.
As small business owners in Vermont, we're excited about the opportunity to stay engaged in this process. We are looking forward to the release of the Administration’s full plan later this month and to working with the legislature next year. We know that in the long run and done right, universal healthcare will save everybody money. When everybody saves money, they have more to circulate back into the local economy, and that's good for Vermont Main Street businesses and our employees.
This article was submitted by four of Main Street Alliance of Vermont's founding members: Wayne Nelson, L.N. Consulting in Winooski, Melinda Moulton, CEO of Main Street Landing in Burlington, Trudy Trombley, The Boutique at Stowe Mercantile and Truly Trudy’s Cosmetics in Stowe, and Eliza Cain, Red Hen Bakery in Middlesex
The Main Street Alliance is committed to elevating the voices of small business owners to advance public policies that are good for small businesses, our employees, and the communities we serve.
As part of National Small Business Week (June 17-21), small business owners from across the Main Street Alliance network are speaking out on the top issues facing the nation.
Each day during Small Business Week, we're releasing a new "Straight Talk on Main Street" issue fact sheet providing unique small business perspective and analysis, on the following schedule:
- Monday - IMMIGRATION REFORM: Immigration reform with a roadmap to citizenship strengthens consumer demand, boosts economy
- Tuesday - TAX FAIRNESS: Ending offshore tax dodging will level playing field for small business
- Wednesday - HEALTH CARE: Small business owners preparing for full implementation of health care reform
- Thursday - ECONOMY-BOOSTING JOBS: Small business engagement critical to growing momentum on Paid Sick Days
- Friday - MONEY IN POLITICS: Small businesses seek greater disclosure of secret political spending by corporations and trade associations
As states across the country take steps to move forward with health reform, the Main Street Alliance released an updated set of small business recommendations for the design and governance of new competitive marketplaces for health insurance, called health insurance exchanges. The recommendations aim to ensure that the exchanges maximize benefits for participating small businesses and avoid conflicts of interest.
Main Street Alliance affiliates are fighting to make sure new state health insurance exchanges are designed to work in the best interest of small businesses, not insurance companies. As part of these efforts, our affiliate in Idaho launched this video highlighting how insurance interests dominate the committees making decisions about health policy in a classic "fox guarding the henhouse" scenario. Click below to watch the video.
New research released today re-confirms two key points that small business owners who've been fighting for health care reform knew all along:
- First, that employer health coverage has been on the decline for the last decade, and small businesses have been feeling the squeeze more than anyone.
- And second, that provisions of the Affordable Care Act are going to bring health coverage within reach for a lot of small business owners who want to offer coverage but haven't been able to.
This second point is real good news for small businesses, and it comes in an Urban Institute report released today by the non-partisan Robert Wood Johnson Foundation (it's refreshing to see some real research after the circus show over the controversial McKinsey & Co. "study" that has been thoroughly debunked over the past week).
The Urban Institute study forecasts that insurance offer rates for firms with 100 or fewer employees will increase by nearly 10 percent thanks to the Affordable Care Act's health insurance exchanges and other insurance market reforms. Firms with fewer than 10 employees are expected to see the biggest jump - an increase of more than 14 percent. Talk about delivering big for small businesses!
Of course, many important decisions remain to be made about how states will set up their new insurance marketplaces, or exchanges. Main Street Alliance leaders are actively engaged in states from Maine to Oregon to promote exchanges that maximize on the opportunity to make quality, affordable health coverage available to all small businesses.