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Health Care Reform
Description: While 2007 saw few votes on health care issues in Congress, work continued at the committee level in both the House and the Senate. Additionally, business groups such as the Business Round Table, National Association of Manufacturers, and the U.S. Chamber of Commerce have been putting together principles for health care reform. We anticipate this type of activity to continue throughout 2008, with the groundwork being laid for a new Congress and new Administration in 2009. Some of the specific issues MEMA will be following include:
Tax Credits for Wellness, Disease Management Programs: Several bills have been introduced by Republicans and Democrats, but have yet to receive widespread support. This is an issue supported by MEMA members and we will work to educate staff and build consensus in Congress.
Catastrophic and Chronic Health Care Costs: Containment of catastrophic and chronic health care costs is essential to controlling overall health care costs as these costs represent a major threat to employers, with about 2 percent of the total population accounting for 40 percent of total health care expenditures. Between 70 percent and 80 percent of all health care costs are related to chronic health conditions. MEMA sits on a coalition steering committee with other business community leaders to examine potential solutions.
Health IT: Today’s health care system is too paper-based, highly inefficient, and prone to error. The business community is supportive of legislation that would facilitate the adoption of a nationwide system and standards for the electronic exchange of health information.
Health Savings Accounts: MEMA continues to support efforts to make HSAs more flexible and a viable option for employers and employees.
Medical Liability Reform: Excessive litigation and high medical malpractice insurance rates have contributed to the nation’s soaring health care costs. MEMA will continue to support sensible medical liability reform.
Small Business Health Plans (SBHPs): Small employers often do not have the resources to self-insure under federal Employment Retirement Income Security Act (ERISA) laws and are subject to state laws which govern health care coverage. A growing number of small businesses have employees in two or more states and must meet two or more sets of requirements. SBHP legislation would allow small businesses to purchase health care through associations or other organizations that meet ERISA certification requirements, and thus would no longer be subject to state mandates. Multi-state employers would enjoy a simplified health benefits program.
Impact on Industry: Rising health care costs remain a top concern for automotive and heavy duty suppliers. For the past several years, health care costs have rated very high on the association’s annual issue survey. Money spent to keep pace with health care costs often takes away from important areas such as research and development.
2008 Anticipated Action: MEMA’s Government Affairs Committee (GAC) and the Health Care Working Group will serve as a sounding board for proposals from Congress and the leading Presidential candidates. MEMA will continue to provide information on health care issues, will follow the policy development of the major Presidential candidates, maintain its involvement in several health care coalitions, and will seek input from the GAC and Health Care Working Group as needed.
MEMA Staff Contact:
Catherine Boland
Director, Government Relations
Phone: 202-312-9241
Email:cboland@mema.org
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