Employer Mandate Is a Misstep

By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce

After months of discussions with senior Senate Democrats on health care reform, the Chamber was greatly disappointed with the first draft of the legislation. The bill is inconsistent with reducing costs and increasing access to health care.

The plan would require businesses to make health insurance available to their employees or pay into a fund. Most employers who can afford to provide health benefits already do so, covering more than 130 million Americans at a cost of more than $500 billion per year. But employers who cannot afford to provide such benefits—including small businesses, seasonal employers, and businesses operating on small profit margins—would be unable to meet the demands of a mandate. Many of these employers may be forced to cut jobs and lay off employees.

In addition, the draft calls for the creation of a government-run insurance plan that would compete with private insurance. According to one study, such competition would be short lived, as an estimated 130 million people would drop private insurance for the government plan. To control costs, it's likely that Washington bureaucrats would ration care and limit the types of treatments available.

Despite these obstacles, the Chamber still believes that comprehensive health care reform can be enacted this year. There is widespread agreement on the adoption of health care IT, investment in results-driven medicine, and an emphasis on wellness and prevention. We will continue to work with President Obama and Congress to pass legislation that is good for families, businesses, and taxpayers.