Higher health insurance premiums and more uninsured people in Maryland. Those are two promises sure to come true with more mandates added to the long list already in Maryland?s Comprehensive Standard Health Benefit Plan for small employers.
That?s why we?re confused by Sen. James Brochin?s proposal to extend the time children may be considered dependents ? and make small businesses pay for it. He now says he is working to make it an option, not a requirement. But what he really should work on is more health care choices for small businesses.Brochin, a Democrat, showed uncommon courage in the special session by opposing tax increases. He understands how the economy works and is willing to stand up for his beliefs. He needs to act now to stop shrinking the pool of small businesses that can afford health insurance.
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Less than 40 percent of businesses with 50 or fewer employees have health insurance in Maryland, down about 11 percent since 1999. Onerous regulations requiring businesses to buy plans that provide wigs, residential crisis services, chlamydia screening and the most expensive add-on ? infertility services ? for employees are big reasons why small businesses cannot afford to buy health plans. In fact, Maryland has 40 coverage requirements ? more than three times as many as Washington, more than twice as many as Delaware and Pennsylvania and almost double the number of Virginia. None of those states forces employers to pay for the options above.
And since two insurance companies split about 90 percent of the small-group market, little competition exists to keep prices low.
The Department of Legislative Services estimates Brochin?s bill could raise premiums more than 1 percent ? a big deal with premiums up 15 percent since 1999 for small-business plans.
The better solution would be to create more options for small employers, with varying levels of coverage. Or let employees choose from a variety of packages that suit their stage in life and health requirements. Or how about charging smokers more? Why should Maryland be the only one-size-fits-all state when it comes to health care for small business?
This is a big problem. Small businesses are the backbone of the state?s economy ? of the 160,000 businesses in Maryland, only 3,300 have more than 100 employees. That means increasing access to health insurance for them has the potential to cover the most people in the state.
Contact Sen. Brochin and tell him you want more choice, not more requirements, higher premiums ?and fewer Marylanders with health insurance. Click here to e-mail Sen. Brochin or call him at 410-841-3648
