Senator Orrin Hatch, R-Utah, a member and former chairman of the Senate Health, Education, Labor, and Pensions Committee, issued a statement to the Subcommittee on Primary Health and Retirement Security highlighting the role small businesses play in Utah and around the country.
His efforts have focused on limiting burdensome healthcare regulations that strangle their growth and impede success. “Through my work as a member of this committee, as Chairman of the Finance Committee, and as a Utahn seeking commonsense solutions to unnecessarily complex problems, I have fought to decrease healthcare costs for small businesses in a variety of ways.”
Senator Hatch has spoken extensively about Obamacare, and he continues his efforts to repeal some of the laws most onerous provisions—some of which hit small businesses hard. Senator Hatch’s statement is part of an effort to advance the Small Business Health Care Relief Act, which he said, “would allow small businesses that have no more than 50 employees to offer stand-alone Health Reimbursement Accounts (HRAs) to their employees if certain conditions are met without subjecting them to an onerous excise tax that went into effect last July. HRAs are an important tool used by employers to help employees pay for health insurance premiums and medical expenses. I will continue to work with Senator Grassley on avenues to advance this important piece of legislation.”
This is the latest of Senator Hatch’s efforts to provide relief for those hurt by Obamacare. At the end of 2015, he ensured that Obamacare’s 40% excise tax on high cost employer-sponsored health benefits—referred to as the Cadillac Tax—was delayed until 2020. He also worked to enact a one-year moratorium on the health insurance tax, which is estimated to increase premiums on average for small employers by more than $200 per employee. Senator Hatch said, “While these are small steps to address the rising cost of healthcare, they provided meaningful relief in the short term.”
Senator Hatch has also co-authored the Patient CARE Act, a plan to, “repeal Obamacare, and instead build the economy, empower the individual, and reduce health care costs,” as Hatch said in the statement. “I will continue to advocate for ways to bend the cost curve for small businesses purchasing health insurance coverage, and I invite anyone – Republican or Democrat – to work with me to address rising health care costs, which is a top issue facing the economic engines of our country.”
The full statement for the record, is below:
Small businesses in Utah, and across our nation, are an important source of employment and economic activity while serving as the foundation of our communities. According to the Small Business Administration, Utah small businesses employ more than 520,000 individuals, which is nearly half of the private sector workforce. Firms with fewer than 100 employees make up the largest share of small businesses in Utah. Small businesses spark innovation, create jobs and complement the economic activity of large organizations. However, small business creation and growth is faltering in Utah and throughout the country because of the Affordable Care Act and its increased costs.
According to a study conducted by the National Federation of Independent Business Research Foundation, “the cost of health insurance is the most critical concern for small business owners in operating their business…” This is further exacerbated by mandates and taxes imposed by Obamacare. It is time for the federal government to stop this assault on small businesses and hardworking Americans. Through my work as a member of this committee, as Chairman of the Finance Committee, and as a Utahn seeking common sense solutions to unnecessarily complex problems, I have fought to decrease health care costs for small businesses in a variety of ways.
At the end of 2015, I ensured that Obamacare’s 40% excise tax on high cost employer-sponsored health benefits—referred to as the Cadillac Tax—was delayed until 2020. Similarly, I worked to enact a one-year moratorium on the health insurance tax, which is estimated to increase premiums on average for small employers by more than $200 per employee. While these are small steps to address the rising cost of health care, they provided meaningful relief in the short term.
As Chairman of the Finance Committee, I have also worked with my colleague, Senator Chuck Grassley, to support the Small Business Health Care Relief Act (S. 3060). This measure would allow small businesses that have no more than 50 employees to offer stand-alone Health Reimbursement Accounts (HRAs) to their employees if certain conditions are met without subjecting them to an onerous excise tax that went into effect last July. HRAs are an important tool used by employers to help employees pay for health insurance premiums and medical expenses. I will continue to work with Senator Grassley on avenues to advance this important piece of legislation.
Many of the other ideas I believe will help to decrease health care costs for small businesses are included in the Patient Choice, Affordability, Responsibility, and Empowerment (CARE) Act I proposed with my colleagues, Senator Richard Burr and Congressman Fred Upton. The Patient CARE Act would repeal Obamacare, and instead build the economy, empower the individual, and reduce health care costs. Of particular interest for employers should be the repeal of the employer mandate that imposes a one-size fits all requirement on small businesses that offer health insurance coverage to their employees. Small businesses know their employees and their health needs better than federal bureaucrats in Washington, and should have flexibility to design benefit packages that work best for them. Furthermore, this proposal would allow small businesses to join together to negotiate small business health plans to leverage purchasing power, which could help expand access to coverage and lower health care costs.
Another component of the Patient CARE Act is giving employers and employees more access to Consumer Directed Health Plans, also known as HSA-Eligible Health Plans. As the lead sponsor of the Health Savings Act of 2016, I feel strongly that giving employees more choice and greater control of their earnings will enable smarter, more personal decisions about their health needs.
Starting, maintaining and growing a small business demands hard work, dedication, and focus. The federal government should do all it can to support small business employers and employees, rather than increasing burdensome regulations that make it difficult for businesses to grow and hire more workers. I will continue to advocate for ways to bend the cost curve for small businesses purchasing health insurance coverage, and I invite anyone – Republican or Democrat – to work with me to address rising health care costs, which is a top issue facing the economic engines of our country.
