State Legislator Group Denounces Maryland's 'Fair Share Health Care Fund Act'
Posted on: Friday, 13 January 2006, 18:00 CST
WASHINGTON, Jan. 13 /U.S. Newswire/ -- The American Legislative Exchange Council (ALEC) today denounced the Maryland General Assembly's veto override of Senate Bill 790, otherwise known as the "Fair Share Health Care Fund Act."
"This is a misguided approach to solve the problem of the uninsured or reduce the cost of health insurance," said Maryland Delegate and ALEC Member Adelaide "Addie" Eckardt, who opposed the bill. "It is an unprecedented government intrusion into the benefit structures of private companies that ignores better approaches-such as expanding health savings accounts or reducing costly mandated benefits-that would help all Marylanders afford insurance coverage."
The bill requires Maryland companies with more than 10,000 employees to spend at least eight percent of their payroll on employee health benefits or make a contribution to the state insurance program for the poor.
Portrayed by its supporters as a way to reduce the number of uninsured, the law will have minimal impact since the majority of Maryland's uninsured work for companies with 10 or fewer employees. The U.S. Chamber of Commerce found that of the approximately 785,000 uninsured people in Maryland, less than one-half of one percent work for Wal-Mart-the target of the new law and the only private employer that would be impacted.
"The Fair Share Health Care Fund Act is nothing more than a health care mandate on large Maryland employers," said Lori Roman, ALEC's executive director. "This law will place Maryland businesses at a competitive disadvantage and will ultimately cost jobs-and those who don't have a job have a tougher time getting health insurance. Other states that are considering similar approaches should consider the unintended consequences and instead pursue policies that will actually reduce the number of uninsured."
Taxpayers and consumers should be concerned because the veto override is not the end of a legislative battle, but rather the beginning of a larger effort to force more private employers to provide health benefits. In all, 33 states have been targeted by the AFL-CIO for their "Fair Share Health Care" campaign.
For more information or to schedule an interview with Maryland Delegate Eckardt; Michael Keegan, ALEC's director of the Commerce, Insurance, and Economic Development Task Force; or with Christie Raniszewski Herrera, ALEC's Health and Human Services Task Force director, contact Stella Harrison Melley at 202-431- 6461 or Joe Rinzel at 202-742-8536.
The American Legislative Exchange Council (ALEC) is the nation's largest nonpartisan, individual membership organization of state legislators, with over 2,400 legislator members from all fifty states, and 97 former members serving in the U.S. Congress. Web: http://www.alec.org
http://www.usnewswire.com
Source: U.S. Newswire
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