The Democrats in the House are looking at some major changes to health care insurance that will affect employers – particularly small entrepreneurs.

According to a recent Workforce Management article on June 19, three House committees began the health care legislative process by introducing a draft bill that would require employers to cover employees or contribute to a national insurance fund.

The House health, commerce and tax committees will dissect the 850-page draft bill with hearings scheduled to begin June 23.

The other side of the aisle is also working on a health care bill. The Senate Health Education Labor and Pensions Committee already began hearings on its 615-page bill. And the Senate Finance Committee postponed hearings on its health care bill until after the July 4 recess. Combined estimates for both bills could exceed $2 trillion. Republicans are concerned about how these programs will be funded, how they will affect employers, and how they will affect patient choice of health care providers.

“From employer mandates that could cost workers their jobs to a government takeover that could cost patients their current coverage, Democrats are proposing a radical shift in how Americans receive health care—one that, unfortunately, puts government before people,” said Rep. John Kline, R-Minnesota and the ranking Republican on the House Education and Labor Committee.

Democrats counter that by citing the many attempts these committees have made to reach out to the corporate and small business communities. “Big businesses, small businesses met with us,” said Rep. George Miller, D-California and chair of the House Education and Labor Committee. “People have been very cooperative.”

The House draft includes a measure that depends on employers paying for a portion of the cost through what it calls “shared responsibility.” It requires employers to pay 72.5 percent of the premium cost for full-time workers and 65 percent for a family policy while meeting minimum coverage standards.

Employers, who do not offer health care, would pay 8 percent of its payroll cost into a health insurance exchange, where people could purchase their own policies. Their choice of insurance providers would include a government-run option. Democrats believe this option would bring competition to private insurers resulting in lower premiums. Republicans believe it is a step toward a government takeover of the health care system. House committee leaders believe their bill would insure about 95 percent of Americans.

The Congressional Budget Office has not published an official cost estimate for this plan, but many legislators believe it will be around $1.5 trillion and incur a $600 billion tax hike.

A  June 12 Bloomberg article cites House Ways and Means Committee Chairman Charles Rangel, D-New York, as saying there is a $600 billion tax increase in this bill and a $400 billion plan to cut Medicare and Medicaid.

The bill, however, is going well beyond the proposed $634 billion President Obama put in his budget request to Congress. Obama called it a “10-year down payment for the policy changes,” writes Bloomberg.

“The hearings and discussions on this bill are important to employers, small entrepreneurs, workers, and anyone without health insurance,” said Amy Murphy, director of Corporate and Community Services for Joliet Junior College. “Many of these proposals will affect health care jobs and could change the content of the training. We will be doing everything possible to keep our programs up-to-date and current.”

 A link to the House draft bill is listed below.

To learn more about this story, visit: http://www.workforce.com/section/00/article/26/49/83.php

http://www.google.com/hostednews/ap/article/ALeqM5jlMpJGn28kqCcgU-aGcYE_ZHW-ywD9907UGG0

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqLNecbH0dcg

http://blogs.suntimes.com/sweet/2009/06/house_democratic_draft_health.html

Link to draft of House bill: http://waysandmeans.house.gov/media/pdf/111/hrdraft.pdf