Tag: flexible spending accounts

Bad for Business, Bad for Jobs, Bad for Economic Recovery

The final vote on House passage of the Senate health care bill (on the motion to concur in Senate amendments to H.R. 3590), was 219-212. The roll call is available here. That bill now goes to President Obama for his signature to become law.

The final vote on H.R. 4872, the Reconciliation Act of 2010, was 220-211. The bill now goes to the Senate for action.

The National Association of Manufacturers issued a statement from NAM President John Engler on the House action on health care legislation. The headline of the release was “Manufacturers Say Health Care Bill Bad for Business, Bad for Jobs and Bad for Economic Recovery.”

Engler’s statement follows:

It is unfortunate that the House of Representatives passed a health care bill that is going to increase costs and make it difficult for manufacturers to continue to offer generous health benefits.

Ninety-seven percent of NAM member companies voluntarily provide health care benefits not only to attract a skilled workforce, but because they believe it is the right thing to do for employees. The legislation passed today will stifle manufacturers’ ability to grow and create jobs while competing in a challenging global economy.

Manufacturers oppose many of the provisions in this legislation, as they would increase their health care costs, including:

  • Excise taxes on health insurance plans which would adversely impact many companies with older workforces and/or smaller self-insured plans.
  • Increase in and expansion of the Medicare hospital insurance (HI) tax, which would increase taxes on investment income and unfairly target some 70 percent of U.S. manufacturers that file taxes at the individual rate.
  • Limits on Flexible Spending Accounts (FSAs) that would curb design flexibility options for manufacturers and place an immediate tax increase on employees that use these tools.
  • New industry-specific fees that single out particular industries to pay for health care reform.
  • Repeal of the tax exclusion for prescription drug subsidies, which would significantly increase employers’ costs and make it more difficult for them to continue offering health benefits to their retirees.

This legislation is fundamentally flawed, with the Congressional Budget Office estimating that the bill could cost as much as $2 trillion over ten years once it is fully implemented beginning in 2014. We entered this debate believing health care reform was about reducing costs through legal liability reform, delivery reform and enhancing competition by allowing employers to purchase insurance across state lines.

Manufacturing has lost 2.2 million jobs since December 2007; this is no time to place additional burdens on America’s job creators. America’s manufacturers will continue to advocate for real health care reform that lowers costs, improves care and does not impede our ability to create jobs, grow our economy and remain competitive in a global market.”

 

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‘Key Vote’ Letter: Manufacturers Oppose Health Care Bill

Today the National Association of Manufacturers sent a “Key Vote” letter to U.S. House members expressing strong opposition to the health care legislation the House is expected to act on soon. (.pdf letter)

“Key votes” are determined by a committee of representatives of member companies. A member of Congress’ votes on these issues are used to determine the member’s record on manufacturing-related issues.

Here’s is the text of the letter, signed by NAM Executive Vice President Jay Timmons:

The National Association of Manufacturers (NAM), the nation’s largest industrial trade association representing small and large manufacturers in every industrial sector and in all 50 states, urges you to oppose the Patient Protection and Affordable Care Act and related budget reconciliation legislation pending before the House.

The vast majority of American manufacturers, including 97 percent of NAM member companies, voluntarily offer health benefits not only to attract a skilled workforce, but because we believe it is the right thing to do for our employees. Our members support proposals that reduce soaring health costs, improve the efficiency of the current system and enhance the quality of care. Conversely, we oppose proposals that make it more expensive or more difficult for employers to offer health benefits.

We regret that neither the House-passed Affordable Health Care for America Act nor the Senate-passed Patient Protection and Affordable Care Act includes important policies that would lower manufacturers’ health care costs – particularly in the areas of legal liability reform, enhancing competition by allowing employers to purchase insurance across state lines, and robust delivery reform. (continue reading…)

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In and Out of the Senate Health Care Bill

IN: Favors for organized labor. Kevin Troutman of Fisher & Phillips writes in a Houston Chronicle op-ed, “Goodies for labor tucked away in health bill,” including: “[Another] provision would establish lucrative state training partnerships that contain little or no opportunities for non-union employee organizations. Provisions in Senate proposals would exempt union-negotiated health care plans from taxes on “Cadillac” health plans.

OUT: Any serious tort reform. From Point of Law, “The Senate health care bill dodges liability reform,” a report that there’s only a “sense of the Senate” language suggesting state demonstration projects. But not too strong of a suggestion.

IN: The Bo-tax, a 5 percent excise tax on cosmetic surgery. See Los Angles Times, “Paying for healthcare reform with a ‘botax’

OUT: Support for consumer-oriented health care reforms, such as Flexible Spending Accounts (FSAs). From Joe Jackson, chairman of Save Flexible Spending Plans and CEO of WageWorks Inc., a news release, “Senate Health Bill Would Significantly Curtail Flexible Spending Accounts.”

IN: New taxes and taxes increases. From the Joint Tax Committee, via Heritage.org, “The Senate Health Bill: Higher Taxes from Harry Reid“:

Reid Taxes as calculated by the Joint Tax Committee:

1. 40% Excise tax on High Value plans such as $8,500 for Individual and $23,000 for a couple. $149.1 billion in new taxes over the next ten years.
2. 0.5% Hike in Medicare Payroll Tax Hike, for single earners over $200,000 and joint earners over $250,000. $53.8 billion in new taxes over the next ten years.
3. Changes to Health Savings Accounts, Archer Medical Spending Accounts and Health Flexible Spending Accounts and Health Reimbursement Arrangements, $5 billion in new taxes.
4. Cap Flexible Spending Accounts at $2500 in cafeteria plans from the current status of unlimited FSA, $14.6 billion.
5. Increase Penalty for early non-qualified Health Savings Accounts Withdrawals from 10 to 20 Percent, $1.3 Billion.
6. Tax on Branded Drugs: manufacturers and importers of branded drugs that will cost taxpayers $22.2 billion.

(continue reading…)

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