CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

CLT UPDATE
Wednesday, March 15, 2006

Healthcare Reform - the next "Big Dig"?


Following more than eight hours of "very productive" meetings Monday, lawmakers are expected today to finalize the remaining provisions of legislation that will expand access to affordable health insurance, Senate President Robert Travaglini said.

Legislative leaders announced 11 days ago that they'd reach an agreement in principle on a bill.

Speaking to reporters with Senate Ways and Means Chairwoman Therese Murray, Travaglini said the remaining work relates to "fine-tuning definitions and preparing it for debate on the floor," which will most likely come next week....

Lawmakers have been working to finalize details of the final legislation that will offer state subsidies for health insurance products, mandate that state residents have some form of insurance, and require certain employers who do not offer insurance to pay an assessment, believed to be about $295 per employee.

State House News Service
Tuesday, March 14, 2006
Senate conferees:
Health car bill "just about done"


In the sausage factory where public policy is crafted, victory is apparently measured by how much federal money can be snared in our statewide health-care net.

But in this case, the damage will be measured in so many increments of blood, sweat and tears that are poured into small businesses across Massachusetts every day.

And so it goes that on Beacon Hill, the scramble to score a win on health-care reform is almost certain to deal a loss to our little engines of economic growth....

The state’s big hospitals flexed their muscles, and a good chunk of corporate Boston rolled over in the name of compromise....

"They’re looking around for someone to bear the burden," says Sam Wakeman, who "offers insurance" for workers at his lumber yard in Kingston. "The Legislature decided, 'We’re going to give health insurance to (everyone).' And now they have to find a way to pay for it."

The Boston Herald
Wednesday, March 15, 2006
Insurance for all? Pols back tax on biz
By Cosmo Macero Jr.


Romney allies had hoped to persuade healthcare negotiators to reduce or eliminate a $62-per-worker fee on companies that already provide health insurance to their workers. The bill also would impose a $295-per-employee annual fee on companies that have more than 10 workers and do not provide coverage to their workers.

The governor, who has made a point of opposing tax increases, expressed concern that the Democrats' health plan could be construed as a tax or a broad-based fee rather than an assessment....

The Greater Boston Chamber of Commerce and other business groups, including the Massachusetts Taxpayers Foundation, have helped broker the deal for the business assessment. Key figures in the negotiations included Peter Meade, the president of Blue Cross and Blue Shield of Massachusetts and John Connors, the chairman of Partners Health Care System.

Romney has support from some business groups that have advocated reducing or eliminating the $62-per-employee assessment on businesses that provide health coverage. They are critical of the influential role that insurers and hospitals, who stand to receive millions of dollars under the healthcare bill, have played in the Beacon Hill negotiations.

The Boston Globe
Wednesday, March 15, 2006
Romney rebuffed on health proposal
Bid rejected to cut employers' fees


Chip Ford's CLT Commentary

This is a distasteful issue, as so many givens -- realities we don't necessarily agree with -- must be swallowed.  We've traveled so far down this road for so long now that turning the clock back isn't even conceivable.

Back in 1989, as the national opposition's spokesman I was invited to testify in Washington before a U.S. Senate subcommittee hearing a bill for a national mandatory seat belt law.  During my testimony before the committee, I pointed out that first came our inalienable rights; next we formed a government to protect those rights; subsequently that government has grown so large and powerful it has reached beyond its seminal purpose; and now we have government-provided health care.  That day's argument of national law proponents was that government-provided medical services can no longer afford the resources to care for the tragically-injured, so we must give up the rights we formed the government to protect.  Massachusetts, though were we promised it'd never happen back then, is now pushing a primary enforcement seat belt law.  And so it goes, always.

Unfortunately today in Massachusetts, the question isn't whether or not the state should be in the business of providing healthcare.  The fact is, the state is in the business of providing healthcare, one way or another, and has been for so long that it's expected by most if not all --  another "entitlement."  It is from this point that we must work now.

Currently, those companies which do provide healthcare insurance are charged an additional "assessment" of $62 -- because they are "responsible."  Those who don't are not charged.

Just like those who provide for their own nursing-home costs at the end are charged an "assessment" of an additional $10.99 per day -- a surcharge on responsibility -- to fund publicly-assisted Medicaid nursing home patients who depend on "charity."

(By the way, we are told that CLT's bill [S.378] to repeal that tax has been reported out of the Elder Affairs Committee as a combination of three bills on repeal of this tax and that, although not yet online, the new bill number is H.4728;  it would repeal the tax over three years. More to follow.)

This seems to be a growing trend in government, at least here in Massachusetts:  responsibility equals deeper pockets.  Penalize "the responsible" to fund everyone else and call it good state social policy.

So why be personally "responsible"?

What do you think will happen if this concept is adopted in only one state in the union?

If you lack health insurance, where would you rather live, or move to?

We just went through this debate with taxpayer-subsidized college tuition for illegal immigrants and heard all the arguments.  One was that we'd get not only more illegals, but more out-of-state residents flowing into our taxpayer-subsidized state college system, either overwhelming it or driving up costs.

What do you suppose will happen if Massachusetts becomes the first state to provide universal healthcare for all its inhabitants?

Remember the Big Dig's "$4.5 billion" cost-estimate back in the late-'80s?  How much do you think healthcare for all will eventually cost us, say by 2010, 2015?

Chip Ford


State House News Service
Tuesday, March 14, 2006

Senate conferees:
Health car bill "just about done"
By Amy Lambiaso


Following more than eight hours of "very productive" meetings Monday, lawmakers are expected today to finalize the remaining provisions of legislation that will expand access to affordable health insurance, Senate President Robert Travaglini said.

Legislative leaders announced 11 days ago that they'd reach an agreement in principle on a bill.

Speaking to reporters with Senate Ways and Means Chairwoman Therese Murray, Travaglini said the remaining work relates to "fine-tuning definitions and preparing it for debate on the floor," which will most likely come next week. Murray, who leaves tomorrow evening for a vacation in Ireland, said she is confident the conferees will agree on all remaining parts of the bill when they meet Tuesday afternoon.

"I think we'll probably finalize everything," she said. "Once we agree to agree on the last remaining things that are out there, the actual writing of the bill is going to take an extensive amount of time. We're close. We're very, very close."

Murray declined to provide details on what the legislation will look like, but legislative leaders have said they agree on the principle that employers should be required to share in the burden of providing affordable health insurance.

"You know I can't tell you that," Murray said, when asked about what the final legislation will contain. "There's just a couple of things left, but they still have to be written, that's the tricky part."

Kimberly Haberlin, spokeswoman for House Speaker Salvatore DiMasi, said the speaker is confident conferees are on track to advance a bill for floor action shortly.

"We concur with the Senate assessment that talks and negotiations are progressing and significant progress has been made," Haberlin said.

Lawmakers have been working to finalize details of the final legislation that will offer state subsidies for health insurance products, mandate that state residents have some form of insurance, and require certain employers who do not offer insurance to pay an assessment, believed to be about $295 per employee.

In addition, lawmakers are hoping to ensure that $385 million in federal money continues to flow when the new fiscal year begins on July 1. That money is contingent upon the state approving a plan that complies with the terms of a waiver negotiated by Gov. Mitt Romney and officials at the Center for Medicare & Medicaid Services (CMS) last year. US Sen. Edward Kennedy assisted in those talks.

On Monday, Romney said he would be "very surprised" if the federal government withheld that money, even though federal officials have asked for 120 days to review the new plan before July 1. Today, Travaglini said he agreed with Romney on that point.

"Based on the number of conversations that we've had with CMS, HHS (Health and Human Services) and the relationships between Senator Kennedy, Governor Romney and those in positions of influence down in Washington, I would be very surprised if we were short-changed in that account," Travaglini said.

Murray said she did not believe her travels abroad would affect the negotiations "because we are just about done." She plans to return to Beacon Hill on Tuesday, but will be reachable by cell phone in Ireland, if needed, she said.

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The Boston Herald
Wednesday, March 15, 2006

Insurance for all? Pols back tax on biz
By Cosmo Macero Jr.


In the sausage factory where public policy is crafted, victory is apparently measured by how much federal money can be snared in our statewide health-care net.

But in this case, the damage will be measured in so many increments of blood, sweat and tears that are poured into small businesses across Massachusetts every day.

And so it goes that on Beacon Hill, the scramble to score a win on health-care reform is almost certain to deal a loss to our little engines of economic growth.

"This good employer/bad employer morality play is ridiculous," says Bill Vernon, from the National Federation of Independent Business. "It’s just not reflective of reality."

The state’s big hospitals flexed their muscles, and a good chunk of corporate Boston rolled over in the name of compromise.

So lawmakers were closing in yesterday on final language that would allow time for perhaps another feel-good press briefing before Sen. Therese Murray’s flight to Ireland.

Pity the sorry little bodegas that can’t swing the cost of a deluxe PPO.

The turning point in this health-care policy scrum was agreement on an annual $295 per-employee fee, to be paid by every business with at least 11 workers that doesn’t offer health insurance.

Still unclear to the entrepreneurs that stand to be hurt most: Exactly what is the definition of "offering insurance."

Is mere access to a group policy enough? Or is an employer contribution required? And how much?

Ten percent? Thirty percent? Fifty?

Ralph Wilbur employs 17 people at his Graphic Litho printing business in Lawrence. He pays 50 percent of workers’ health insurance premiums.

As it stands he’s in the clear from the $295 assessment. But he’s not exactly dancing a jig.

"It’s just another tax on employers," Wilbur was saying yesterday. "Massachusetts is a very hostile environment for business. Sometimes it’s almost an accident that we get work from other states."

Nobody said this would be easy. Especially with so many conflicting interests clamoring for a voice.

But your state lawmakers - while allowing Big Medical to treat them like wind-up toys - have all but ignored a critical truth: The work experience of many folks in Massachusetts does not fit into one tidy little box.

Some businesses exist solely because there is a demand for second jobs. Some workers build a life earning an income any way they can.

"It all comes down to a realization that a lot of people in this state do not work 40 hours a week behind a desk, or at a factory," says Vernon. "It’s very hard to legislate equitably and fairly for those kinds of arrangements."

How will a tiny neighborhood restaurant cope with that $295 assessment if it comes time to cross the 11-worker threshold?

Why should a landscaper, or a painter, or a guy who does sheetrock with a good crew of college kids be placed in the same column as a software firm with $10 million in venture capital behind it?

"They’re looking around for someone to bear the burden," says Sam Wakeman, who "offers insurance" for workers at his lumber yard in Kingston. "The Legislature decided, 'We’re going to give health insurance to (everyone).' And now they have to find a way to pay for it."

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The Boston Globe
Wednesday, March 15, 2006

Romney rebuffed on health proposal
Bid rejected to cut employers' fees
By Frank Phillips, Globe Staff


Democratic legislative leaders rejected a last-ditch effort yesterday by Governor Mitt Romney and his allies to water down a proposed business assessment that would help pay for a comprehensive healthcare bill, a move that would have rescued Romney from a politically difficult decision on whether to veto the legislation.

Romney allies had hoped to persuade healthcare negotiators to reduce or eliminate a $62-per-worker fee on companies that already provide health insurance to their workers. The bill also would impose a $295-per-employee annual fee on companies that have more than 10 workers and do not provide coverage to their workers.

The governor, who has made a point of opposing tax increases, expressed concern that the Democrats' health plan could be construed as a tax or a broad-based fee rather than an assessment. The Democrats' plan would raise up to $48 million to help pay for what they call near-universal coverage, but Romney wants the business assessment restructured so that it does not raise new revenue, according to four Beacon Hill sources familiar with the negotiations.

The healthcare bill, long sought by Romney and Democratic legislative leaders, would add some heft to his resume in the event he runs for president. Backers say it would eventually provide coverage for most of the state's 500,000 to 600,000 uninsured and would be a ground-breaking program nationally.

But, in considering the bill, Romney also must be sensitive to the antitax sentiment that runs strongly through the Republican presidential landscape.

House Speaker Salvatore F. DiMasi, in an interview in his office yesterday, rejected Romney's suggested changes. He pointed out that, in a major breakthrough in their negotiations on the bill two weeks ago, he and Senate President Robert E. Travaglini agreed to include a $295-per-employee fee for companies that do not provide health insurance and to retain the $62-per-worker fee that all companies are charged under the current system.

"That's what we agreed on," said DiMasi, who said that he had not been presented with any formal proposal by the administration for a change. "The terms and the parameters of the agreement had already been set."

Other negotiators who are working out the final details of the legislation said that the Romney proposal was also rejected by the Senate leadership.

Travaglini told reporters yesterday that the bill is near completion. "The biggest obstacle that we're left with is just fine-tuning the language and the definitions and preparing it for debate on the floor," he said.

Senate minority leader Brian Lees, taking the administration's position, made a pitch yesterday to Democrats to accept Romney's plan for reducing the assessments on businesses that provide health coverage, lawmakers said. The assessment is designed to charge companies for the state-paid medical services that their uninsured workers received from the so-called free care pool.

Reached late yesterday, Lees, who serves on the House-Senate conference committee working on the bill, said he would not comment because the negotiations are confidential. "This has been a long and arduous process, and all views have been expressed at the conference meeting," said the East Longmeadow Republican.

Romney said Monday that he has made no decision on whether he would sign the healthcare overhaul and will wait to see what emerges from the conference committee.

"I'm going to see how this is characterized as it's related to use by employees of the free care pool -- is it instead something that looks like a broad-based fee? -- and I think how I will react to it will depend in part on how it's applied and to whom," the governor said after a speech to the Greater Boston Chamber of Commerce.

One of the major provisions in the governor" version, a mandate that individuals be required to carry health insurance, has been accepted by the lawmakers.

By late yesterday, House and Senate negotiators finished deciding the last major details of the bill, though it still must be written into formal legislation. It is expected to be reported to the House floor by next week. Lawmakers predict that a final version will be on Romney's desk by late next week or early the following week.

With overwhelming Democratic majorities in the House and Senate and the support of both leaders in the Legislature, it appears likely that lawmakers could override a veto of the bill if Romney were to reject it. In addition to vastly expanding coverage, the bill is designed to preserve $385 million in federal Medicaid funds the state receives annually.

The Greater Boston Chamber of Commerce and other business groups, including the Massachusetts Taxpayers Foundation, have helped broker the deal for the business assessment. Key figures in the negotiations included Peter Meade, the president of Blue Cross and Blue Shield of Massachusetts and John Connors, the chairman of Partners Health Care System.

Romney has support from some business groups that have advocated reducing or eliminating the $62-per-employee assessment on businesses that provide health coverage. They are critical of the influential role that insurers and hospitals, who stand to receive millions of dollars under the healthcare bill, have played in the Beacon Hill negotiations.

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