U.S. Chamber member James Wordsworth warns the House Small Business Committee during a June 3 hearing that an employer health care mandate would endanger jobs and stifle growth.

 
The health care reform proposals being debated by lawmakers are a mixed bag for small business, according to a U.S. Chamber of Commerce representative testifying before Congress last week.

"Congress is currently considering some policy changes that could have a profoundly helpful effect on the ability of small businesses to purchase coverage," said James Wordsworth, president of J.R.'s Goodtimes Inc. of McLean, Virginia, and chairman of the Chamber's Council on Small Business. "Congress is also considering some policies that would make things worse, causing more small businesses to avoid providing benefits and hurting the economy." Wordsworth testified on behalf of the Chamber during a House Small Business Committee hearing on June 3.

Wordsworth praised proposals to combat rising health care costs, make health care more affordable and improve quality. He endorsed proposals to pay for performance and not just quantity of care, improve care coordination and explore bundling payments, reduce hospital readmissions, increase transparency, and provide subsidies for workplace wellness programs.

Wordsworth also voiced support for a "national health insurance exchange," a watchdog group that would oversee rules and standards for insurance. "The exchange could be a powerful tool for connecting individuals and small businesses with insurers, helping them to shop smart" for policies, Wordsworth said.

Requiring employers to provide insurance to their workers would be a misstep, according to Wordsworth. "The idea that an employer mandate will increase coverage is illusory, because new rules will not change financial realities for small businesses," he said.  "A mandate could cost hundreds of thousands of jobs, prevent businesses from hiring new workers, or increase outsourcing and company restructuring in efforts to avoid the mandate."

Should a coverage mandate be enacted, Wordsworth added, it should minimally burdensome. "Minimum standards for benefits need to be truly minimum – let the standard fall somewhere in the vicinity of having coverage for catastrophic events to avoid medical bankruptcy and having coverage of preventative services."

Wordsworth also warned against taxing employee benefits as a way to pay for health care reform. 

Read Wordsworth's testimony.