Wednesday, March 04, 2009
Health Care Payroll Tax for All is Back
Legislation that would create a universal health care system in Maryland, funded primarily by an employer payroll tax, is back this year (SB 813/HB 951). The Senate version of the bill will be heard by the Senate Finance Committee on March 18. Defeating this legislation is a priority for the Maryland Chamber.
The bill would impose a $2.5 billion annual payroll assessment on the FICA wage base of all employers in Maryland starting July 1, 2009. This assessment would pay 85 percent of the program’s costs for expanding health care programs. Components of the program would include:
- Combining the individual and small group health insurance markets
- Requiring community rating and guaranteed issue for health insurance
- Subsidizing the cost of insurance for persons with incomes under 400 percent of the federal poverty level
- Expanding Medicaid eligibility
- Reinsurance of high risk individuals
- An individual mandate for persons to purchase health insurance
“While the bill promises savings in health insurance costs, these may never materialize. However, the payroll assessment is guaranteed,” Maryland Chamber Vice President of Government Affairs Ron WIneholt said.
Contact your legislators and urge them to oppose SB 813 and HB 951. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
