IN CASE YOU MISSED IT: Landrieu: Health Care Reform Must Take into Account Needs of Small Businesses.

September 18, 2009

Contact: Aaron Saunders (202) 224-0098

Landrieu: Health Care Reform Must Take into Account Needs of Small Businesses

A column by United States Senator Mary L. Landrieu, D-La.

WASHINGTON - The following op-ed was published yesterday in the New Orleans newspaper, The Times-Picayune. Newspapers and online news sites are invited to reprint it:

"The Business of Health Care" by Sen. Mary Landrieu

Charlie Kurzweg owns a paper supply business, Diamond Paper Co., in east Destrehan. He generally covers 80 percent of his employees' health care costs, but for Charlie and his 33 employees, premiums have gone up 9 percent to 15 percent a year for the last several years. Insurance premiums are so expensive that some of his employees -- even when paying only 20 percent -- have dropped their coverage.

Unfortunately, this story is not unique. In 1993, 61 percent of small companies offered health coverage. Today, that number is less than 38 percent nationwide, and in Louisiana it is less than a third. This hurts small businesses' ability to compete for top talent and, in my view, hampers opportunities for job creation at a time when our state and nation need it the most.

In addition, insurance premiums for the more than 20 million self-employed individuals have increased 74 percent since 2001. Even more alarming, the New America Foundation predicts that by 2016, the average American family may have to dedicate 45 percent of its household income toward the cost of employer-sponsored health insurance.

This current situation for businesses in Louisiana and throughout the country is clearly unsustainable. We must find ways to stabilize costs for our innovators, entrepreneurs and job creators.

Small business owners need Congress to say "yes" to meaningful reform. The truth is Democrats and Republicans can find common ground on many initiatives to improve America's health care system for businesses and individual consumers alike.

Here are some of the elements on which we are building a solid and responsible bipartisan compromise that will reduce costs for both businesses and their employees:

-- Continuity: Workers and businesses who have health insurance and are satisfied with their plan and doctor can keep it. Government will not get in the way.

-- Cost containment: We cannot expand choice, assure stable access and improve quality if we do not first reduce costs in our health care system. One of the proposals, the Healthy Americans Act, which I have co-sponsored, establishes tough cost containment measures that save $1.48 trillion over 10 years by eliminating administrative costs and changing the outdated tax code.

-- More affordable choices: Employees at small firms often tell me their employers can only afford one, sometimes inadequate, health care choice. Each proposal gives employees an alternative to their employer-provided plan.

-- Insurance reform: No American, especially the sick or those with a previous health problem, should be denied coverage. Congress should ban insurance companies from refusing consumers based on pre-existing conditions.

-- Redesigned systems: Implementing electronic records and increasing transparency will reduce medical errors and result in significant cost savings.

As we move forward in this debate, the needs of small businesses must be a priority. In my view, Congress should also embrace several other principles in its final health care bill, including:

-- Preserving the strength of Medicare: Without reform, it is predicted that Medicare will be bankrupt by 2018. Any Medicare savings accrued by reforms should stay in the Medicare system to extend the life of the program and not be diverted to other government programs.

-- Individual responsibility: Many small firms do not offer health insurance to their employees because they cannot afford it. Mandating these businesses to provide coverage would only further cripple companies that are already struggling. Any requirements from Congress should be directed to individuals, not businesses.

-- Insurance exchanges: Pooling small firms together through an insurance exchange would give smaller employers better access to the market.

This is the type of change that Louisiana deserves and all of America needs. It will succeed only if we work together to find common ground.