October 25, 2009

HEALTHCARE REFORM

Now that President Barack Obama’s prolonged honeymoon with liberals has waned, reality has set in.

In his weekly radio address yesterday, Mr. Obama acknowledged the loss of hundreds of thousands of jobs among small businesses -- and called for new programs to alleviate growing fears of a recession.

The seriousness of the situation is emphasized by the President’s willingness to include healthcare reform to boost small businesses:

“Many entrepreneurs can’t get financing to start a small business in the first place.  Many more are discouraged from even trying because of the crushing costs of healthcare – costs that have forced too many small businesses to cut benefits, shed jobs, or shut their doors for good!”

THIRD  RAIL

Healthcare?

That’s the third-rail of politics.  Touch it without insulated gloves and you are toast.

Not to worry.

Obama assures us that health insurance reform will allow small businesses to buy insurance for their employees “through exchanges which may offer better coverage at lower costs and provide tax credits to those businesses.”

Those “exchanges” – we learn -- are banks that are called upon “to stand by creditworthy small businesses.” Presumably to make loans, those businesses may need to start up, grow their operations, or create new jobs.

Says Obama,

“It’s time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system, and more broadly-shared prosperity.

‘We are going to take every appropriate step to encourage them to meet those responsibilities.  Our economy as a whole can’t move ahead if small businesses --and the middle class -- continue to fall behind.”

“COMMUNITY  BANKS”

Obama on Wednesday called for legislation to raise the ceiling on selected Small Business Administration (SBA) loans.

In addition, he asked Congress to approve steps to provide lower-cost capital to “community banks.”

Both proposals would use existing funds from the Troubled Asset Relief (TARP) Program.

“The goal here is to get credit where it’s needed most – to businesses that support families, sustain communities, and create the jobs that power our economy.”

The President asserted the economic recovery act “provided $5 billion worth of tax relief, as well as temporarily reducing or eliminating fees on SBA loans -- and guaranteeing some of these loans up to 90 percent.

“This, he says, has supported nearly $13 billion in new lending to more than 33,000 businesses.”

HIGHER  PREMIUMS

Existing insurers also agree with Republicans that the proposed health care legislation would raise premiums because sick people would be more likely to enroll than healthy people.

Also, they assert, the taxes and other ways of paying for the program would be passed on to employers -- and their workers -- in higher premiums.

Senator Mitch McConnell, (R.Ky.)  minority leader, responded tartly to Obama’s radio address: “We can’t support a bill that will raise premiums!”

Small businesses employ approximately 40 percent of the private labor force.  Thus, they are a great concern for both political parties.  Small companies complain they are forced to pay more for the same coverage as large employers.

Insurance brokers say healthcare premiums for small businesses in the coming year will go up an average of 15 percent – double that of last year.

AMA “BAD ADVICE” ’

According to The Hill, an independent daily newspaper for Congress, Democrats are not expected to have sufficient votes to pass a “doctors’ fix,” a 10-year freeze of scheduled cuts to Medicare physician payments in return for support of Obama’s broader healthcare initiative.

Senate Majority Leader Harry Reid "told colleagues that the AMA said it could deliver 27 Republican votes for the legislation, ... Reid needs the GOP votes because at least five members of his party have vowed to vote against the doctors' fix."

However, Reid told colleagues earlier last week that he was given “bad information” by the American Medical Association that will result in a significant setback to the Democrats’ healthcare reform strategy.

This -- after President Obama’s gift of lab coats to visiting doctors, and beer on a White House lawn gabfest.

We are reminded of President Harry Truman’s famous advice to disenchanted Senators: “If you want a friend in Washington, buy a dog.”

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist