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Dire jobs numbers spark renewed push for repeal of employer mandate

By Julian Pecquet - 09/14/11 06:11 PM ET

Congressional Republicans and the U.S. Chamber of Commerce are renewing their push for repealing the healthcare laws employer mandate in the wake of last months flat jobs numbers.

Bills to repeal the requirement that businesses provide their workers with quality health insurance starting in 2014 have garnered 34 co-sponsors in the Senate and 144 in the House, including Blue Dog Rep. John Barrow (D-Ga.). And on Wednesday, the International Franchise Association released a report that found that the mandate threatens 3.2 million full-time jobs at tens of thousands of franchise businesses.

The president has talked about growing the economy and creating jobs — this is one way of providing certainty to our job creators and our entrepreneurs, Rep. Pat Tiberi (R-Ohio.) said at a news conference announcing the report. We can repeal this mandate and give a signal to those job creators and entrepreneurs and small-business owners that they can concentrate again on hiring people and growing their businesses.

Barrow said the mandate has two perverse incentives: It encourages small businesses not to grow beyond the 50-employee threshold when the mandate kicks in, and the penalty — $2,000 per year per employee — is lower than the cost of providing the generous healthcare coverage mandated under the law. 

Still, the mandate is a centerpiece of the healthcare reform law and is unlikely to go anywhere in the Democratic-controlled Senate.

Rep. Charles Boustany (R-La.) acknowledged that the legislation isnt paid for and would add to the deficit. But he said the onerous nature of the mandate in terms of disruption to businesses outweighs its impact on the governments bottom line.

We can solve the deficit issue doing other, bigger things, Boustany told The Hill. None of this is in place yet so nows the time to repeal it.

Boustany also said that House Republicans have yet to decide whether to advance the bill as a stand-alone measure or as part of a broader jobs package.

We wanted to get the bill out there as a marker, he said, probably [as] part of a bigger package.



Source:
http://thehill.com/blogs/healthwatch/health-reform-implementation/181639-dire-jobs-numbers-spark-renewed-push-for-repeal-of-employer-mandate

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