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Statement of Robert Greenstein, Executive Director, Center on Budget and Policy Priorities, on The Senate Finance Committee's Health Reform Plan
Date:10/13/2009

mployer charge would be capped at $400 times the total number of full-time workers a firm employs, including workers who do not receive subsidies.)

Many economists believe this provision would make it harder for people from low- and moderate-income families to secure or retain jobs, a problem the Committee exacerbated by voting to deny employers required to make these payments the right to deduct them as a business expense, even though employers deduct the payments they make for workers' health insurance premiums. This change will increase the cost to employers of hiring or retaining employees from modest-income backgrounds and, thus, heighten the disincentive to employ such workers. The "free rider" provision also would place significant administrative burdens on employers, because it would be complex and burdensome to administer. (Read: http://www.cbpp.org/cms/index.cfm?fa=view&id=2921)

Policymakers should continue to move health reform legislation through the legislative process. In so doing, they should blend the best provisions from the various bills in a way that is fiscally responsible, addresses the shortcomings that remain in the Finance Committee package, and can command the votes to pass Congress in final form.

The Center on Budget and Policy Priorities is a nonprofit, nonpartisan research organization and policy institute that conducts research and analysis on a range of government policies and programs. It is supported primarily by foundation grants.

SOURCE Center on Budget and Policy Priorities


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