GOP panel chairman slams employer mandate rule

The Obama administration's proposed rule on the employer mandate will hamper the growth and success of small U.S. firms, the chairman of the House Small Business Committee wrote Friday.

In a letter to Timothy Geithner, now the former Treasury Secretary, Rep. Sam Graves (R-Mo.) quoted small-business owners saying the new rules under healthcare reform are impeding new hiring and raises for workers. 

"To speed our nation's economic recovery, we must encourage an environment in which small businesses can hire and expand," Graves wrote. "I encourage you to remember the concerns of small-business owners and minimize their burdens as you consider these regulatory alternatives." 

The Internal Revenue Service moved forward with implementing the employer mandate in late December.

The 144-page regulation would require businesses that don't offer insurance to pay a penalty if more than 30 of their employees receive government help to buy coverage.

The proposed rule would also require coverage to be "affordable," or costing no more than 9.5 percent of a single worker's income.

On Friday, Graves criticized the regulation for "problematic" definitions of "affordable coverage," "minimum value" and "full-time employee."

He added that many aspects of compliance will burden small businesses that lack "a human resources department, a compliance officer, accountant or general counsel to handle them."

Geithner left his post last Friday. The new acting Treasury Secretary is Neal Wolin, who will lead the agency until chief Obama adviser Jack Lew is confirmed.

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