Action Alert: Make Your Voice Heard on the Governor’s Prescription for PA Plan
October 8, 2007
ACTION ALERT
BACKGROUND: Earlier this year, Pennsylvania Governor Ed Rendell unveiled his “Prescription for Pennsylvania” plan, which promises to “Cover All Pennsylvanians” (CAP) who are uninsured. While the Manufacturers’ Association supports Governor Rendell’s attempt to reduce the cost of uncompensated care and his efforts to apply several cost-saving elements, the Association cannot support his proposed pay-or-play health plan due to certain provisions that raise concern for the business community.
The governor’s plan does nothing to address the “root” cause of Pennsylvania’s health-care problem – the rapidly rising cost of health care and health insurance. The proposal places too much emphasis on shifting who is responsible for paying the costs of health-care insurance rather than on reducing the intrinsic cost of the health-care system.
The Manufacturers’ Association opposes the fair share assessment, or “payroll tax,” which will be levied on employers to help pay for the proposed CAP program. Specifically, all employers (not just those who currently do not provide health insurance to their employees) will be assessed a 3-percent tax on their total payroll.
As it stands, portion of the governor’s plan would impose a 3-percent “fair share” payroll tax on Pennsylvania companies that don’t provide employees with health insurance. Those employers who currently offer health insurance can receive a deduction equal to 3 percent of their wages provided their plan is deemed to be “fair and equitable” by the state. Small employers fewer than 50 employees will receive a credit against the amount of the payroll tax they are required to pay to help ease the transition in covering their employees. It is also projected to increase to 3.5 percent in the out years of the plan.
IMMEDIATE ACTION REQUESTED: You are invited to attend a town hall type meeting with Rosemarie Greco, director of the Office of Healthcare Reform, and Joel Ario, acting insurance commissioner. This is an opportunity for you to comment on the governor’s “Prescription for Pennsylvania” plan and the issues of insurance reform in the Commonwealth.
LOCATION AND TIME:
11 a.m.-1 p.m. Monday, October 15th
Erie City Council Chambers
626 State Street, Erie
REGISTER FOR THE EVENT: RSVP to Katrina at 717/787-5825 if you are interested in providing comments on the plan.
If you need additional information on “Prescription for Pennsylvania’ plan, please contact Sheila Sterrett at 814/833-3200. Thank you.