February 14, 2008

Corona Chamber Defeats Mandated Healthcare Tax

A highly controversial proposed healthcare reform failed to pass the State Senate - ending a year-long debate over how to fix California’s failing healthcare system. The Corona Chamber of Commerce voted to oppose the Governor’s proposal when, in the fall of 2007, he called a special session of the legislature to deal with the reform proposals.

“I want to commend Corona business owners who already provide healthcare coverage to thousands of workers and their dependents. I also wish to thank our members for joining the Chamber to defeat this mandated tax burden on businesses,” stated Cynthia Schneider, Chair of the Corona Chamber’s Legislative Action Committee.

The Corona Chamber opposed the Governor’s proposal, ABX1 1 the Health Care Security and Cost Reduction Act, because it would have created a new and expensive entitlement program, expanded the Medi-Cal program and would have imposed a tax on employers who are already over-burdened. We were particularly concerned because the financing scheme on which ABX1 1 was dependent was based on funding from an already declining revenue stream from increased tobacco taxes.

The Corona Chamber believed that the bill posed considerable risks to consumers, workers, employers and taxpayers, without any demonstrable evidence that the bill’s promise of increased health care access could be delivered over the long term. It was our feeling that the proposal’s provisions anticipated revenue that would likely be inadequate for the programs proposed. If the California Director of Finance determined revenues were inadequate, some of the programs, most notably the subsidized pool coverage for low-wage workers (though not the tax increases or many of the regulatory mandates), would be suspended. This could have result in an untenable situation where coverage would be terminated in the middle of an individual’s medical treatment.

In addition, many Californians, including the self-employed, rely on affordable individual policies for their health care coverage. ABX1 1 would have imposed substantial premium increases on these individuals by inappropriately providing for guaranteed issue and a community rating system, while avoiding enforcement of the individual mandate. New York and New Jersey have similar individual market provisions, and suffer the highest individual health insurance premiums in the country.

Moreover, the health care package undermined the intent and spirit of the Employee Retirement Income Security Act (ERISA), which is to allow multi-state employers to provide and administer uniform health care benefits to their employees. Recent federal court rulings in Maryland and New York have emphatically held that state employer mandates violate ERISA.

One of the Chamber’s major concerns was the proposal’s funding mechanism. A report by the Legislative Analyst’s Office showed the plan was structurally underfunded. In addition to general fund risks, the Senate President Pro Tempore Don Perata (D-Oakland) expressed concerns prior to the vote that the plan would create the third-largest program in state government in a year when California already faces an estimated $14.5 billion budget shortfall.
 

October 23, 2007

California’s Community Hospitals: Balancing Patient Access and Earthquake Safety Compliance
 

The Corona Chamber met with Corona Regional Medical Center CEO Ken Rivers to talk about the current state of our healthcare crisis. Ken Rivers reported on a recent California Hospital Association (CHA) effort to educate Californians on the future of healthcare.

Click here to watch a video on this issue.

According to the CHA, California hospitals are a vital part of our communities. During the past decade, 70 acute-care hospitals and 71 emergency rooms have closed due to financial and other problems. This has left our state's growing and aging population with less access to hospital services.

Despite these pressures, California hospitals are facing another unprecedented challenge — ensuring access to patient care while meeting the state’s earthquake compliance standards. Achieving current earthquake safety requirements will have serious financial impacts on hospitals and could result in even more closures or restrictions of inpatient services. According to a recent RAND Corporation study, the cost of compliance could reach as high as $110 billion in 2006 dollars. This estimate does not include financing for the five to six years minimum needed to retrofit or rebuild hospital buildings.

Below is a copy of the Chamber's letter to the CHA in support of their efforts:

October 29, 2007

C. Duane Dauner, President

California Hospital Association

1215 K Street, Suite 800

Sacramento, CA 95814

Fax: 916-552-7596

California Hospital Association and California’s Healthcare Challenges

Dear Mr. Dauner:

The Corona Chamber of Commerce reviewed the “Code Blue: California’s Community Hospitals” information provided by your association.

The Chamber wants you to know we fully support your efforts and we understand the difficult challenges that face most hospitals in our state.  More specifically, the three key components that may hinder affordable healthcare services and add to the already rising costs of healthcare providers such as acute-care hospitals, community hospitals and other hospital services. 

We understand these three key components to be:

- The estimated $110 billion of unfunded mandated earthquake building safety compliance.  Earthquake safety requirements have and will continue to impact hospitals financially as they try to meet the mandated requirements without any funding by the state.

- The severe shortage of skilled healthcare workers in the various professions needed at our hospitals.  More programs and schools are needed to meet the demand of severely needed hospital professionals.

- The increase use of emergency rooms as first care treatment centers and offices for non-emergency care.  The current healthcare crisis in California has led to many discussions on healthcare insurance for individuals.  As the legislature debates how to create and pay for such a system, the use of emergency rooms in hospitals for non-emergency care throughout California continues to rise.  This creates longer waiting periods and higher costs for individuals who do not have healthcare insurance.

We look forward to a possible partnership in regard to fixing the current problems that impact the citizens of Corona and the millions of individuals throughout California.

Sincerely,

Bobby Spiegel                                                                      

President/CEO

Cynthia Schneider

Chair, Legislative Action Committee  

September 7, 2007

Corona Chamber Continues to Oppose Healthcare Reform Proposals

Today, the Corona Chamber's Legislative Action Committee Chair Cynthia Schneider released the following statement on pending healthcare reforms in Sacramento:

"As you may or may not know, the Corona Chamber of Commerce Legislative Action Committee (LAC) provides a basis for the Corona Chamber to act on local, state and federal government issues and to have a good working relationship with its elected officials thus creating a favorable and profitable business climate.

Our legislators have less than two weeks remaining before the scheduled end of the legislative year in Sacramento. This is a critical time for us to act on legislation that will impact the business community.

I want to share some information regarding a particular legislative bill, AB 8 (Nunez), which the Corona Chamber is opposing. AB 8 creates a government-run healthcare system for employees who don’t receive healthcare from their employers. Under AB 8, the new healthcare system will be financed almost exclusively by a 7.5% payroll tax on all employers who don’t spend a certain level of funding on employee health care.

Furthermore, AB 8 will also allow an unelected volunteer board of bureaucrats the new right to increase the health care payroll tax as needed for costs. It is believed the payroll tax will have to be increased substantially, well beyond what most employers pay in health care costs today, without having a check and balance in place.

Please stand with us in opposing AB 8. On our website you can find a letter of opposition, along with the other various legislative bills we oppose. Together, we can make sure our voices are heard at the Capitol."

August 15, 2007

The Chamber Says “No” To Healthcare Tax

The Corona Chamber of Commerce opposes the Legislature’s proposal to fix California’s broken healthcare system. The Legislature’s proposal, AB 8, creates a government-run healthcare system for employees who do not receive healthcare from their employers. The proposed law attempts to fix our broken healthcare system almost exclusively by a payroll tax on all employers who do not spend a certain level of funding on employee healthcare.

“Corona businesses provide healthcare coverage to thousands of workers and their dependents,” stated Bobby Spiegel, President and CEO of the Corona Chamber. “We support the goal of increasing healthcare coverage to more people by increasing insurance affordability - without undermining our economy. Unfortunately, AB 8 does not meet this goal,” continued Spiegel.

“Our elected officials are asking businesses to carry the load of fixing our healthcare crisis,” stated Cynthia Schneider, Chair of the Corona Chamber’s Legislative Action Committee. “Our long-standing position on healthcare reform is clear: we oppose any mandated healthcare reform proposals that mandate that the entire financial burden be placed on business,” continued Schneider.

Early calculations indicate the new tax might not raise the required revenues needed to provide the benefits as indicated in the proposed new law. AB 8 imposes a new payroll tax of 7.5 percent on employers who do not currently spend that much on healthcare. Furthermore, an appointed volunteer board of bureaucrats would be given the right to increase the healthcare payroll tax, as needed, in order to cover any underestimated costs.

A 7.5 percent tax on the payrolls of low-wage employers will not provide enough revenue to purchase the average HMO plans envisioned in the legislation; much more revenue will be needed. And since health care cost inflation grows more rapidly than payroll, even more taxes will be needed in the future as the gap between the costs of the new program and collected revenues only widens.

Furthermore, rather than seek to contain costs and address access through increased affordability, AB 8 simply imposes an illegal tax on employers who can’t afford to purchase health insurance. Labeling this new health care tax a “fee” that can be approved by a simple legislative majority violates the will of the people, who amended our state constitution to require a two-thirds vote for tax increases when they passed Proposition 13.
 

June 8, 2007

Corona Chamber Educates Business Community on Healthcare Reform Proposals

Yesterday, the Corona Chamber and the Corona Taxpayers Association co-hosted a regional Health Care Summit at California Baptist University educating the regional business community on the current healthcare reform proposals. Panelists also informed participants on how the growing healthcare burden will force new taxes on small businesses.

“We want our business community to know all the facts,” stated Cynthia Schneider, Chair of the Corona Chamber’s Legislative Action Committee. “Most of the current healthcare reform proposals place much of the financial burden on employers with 10 or more employees.”

Most healthcare reform proposals impact less than 20% of businesses in the state. However, the Corona Chamber is concerned that elected officials in Sacramento are not doing enough to look at other options before they tax businesses to pay for healthcare reform.

“The Corona Chamber is taking action to ask our elected officials and the Governor to streamline the healthcare bureaucracy to cut costs instead of taking more money from our wallets,” stated Bobby Spiegel, President and CEO of the Chamber. “We want our elected officials to know where we stand on this serious issue.”

In May 2007, the Corona Chamber traveled to Sacramento to educate elected officials on healthcare reform alternatives. The Chamber made it very clear that health care reform is priority number one and asked that members of the legislature stand strong on protecting the business community from the unfair burden of paying for healthcare reform.

The Chamber is also committed to offering reasonable solutions to the health care crisis. Mandating new taxes on business is not the best solution and elected officials need to know there are other ways we can cut health care costs. The Corona Chamber, working with Assemblymember Todd Spitzer to review state guidelines and practices in approving construction applications for health care facilities in our state. The Chamber is concerned that the fees associated with the review process are enormous and review times are protracted and prolonged.

“It is costing hospitals millions of dollars in construction costs and sometimes additional years to get their projects approved,” stated Schneider. “Both the fees and the inordinately excessive review times drive up project costs, ultimately impacting a rise in health care costs for employees, employers, and patients. Streamlining hospital project timelines and costs is an important fix to our healthcare crisis,” continued Schneider.

Corona Chamber and the Corona Taxpayers Association Co-Host:

The State of Healthcare “The Impact of Health Care Reform on Small Business”

The Corona Chamber and the Corona Taxpayers Association are co-hosting a Health Care Summit on June 7, 2007 to provide the community with current information on proposals to reform California's healthcare crisis.

The cost of health care and the rise in the number of uninsured has made it difficulty for many employers, especially small employers, to afford health care benefits for their employees. A recent study estimates the average California family pays about $1,186 a year in health insurance premiums to cover the uninsured.
 

Event Details

California Baptist University
8432 Magnolia Avenue
Riverside, CA 92504-3206

June 7, 2007
9am – 4pm

$35.00 per person
 

For more information please contact: (951) 737-3350
 

Event Schedule

Panel Discussion of the President’s Healthcare reform, the Governors Healthcare proposal, Democrat Sen. Don Perata’s Healthcare proposal, the Senate Republicans Healthcare proposal and the Assembly Republicans Healthcare proposal.

Keynote speaker will present: “How the growing healthcare burden will force new taxes on small businesses.”

Small Business Breakout Session will cover: “How will healthcare reform affect small
businesses in California?”

Healthcare Access Breakout Session will review: “Do Inland Empire residents have access to adequate healthcare?”
 

April 15, 2007

Corona Chamber Leads Regional Effort to Reduce Health Care Costs

The Corona Chamber is working with Assemblymember Todd Spitzer and a regional business advocacy coalition of the Temecula Valley, Murrieta and Lake Elsinore Valley Chambers of Commerce to offer solutions to our state’s health care crisis. The rising costs of health care in California is making it difficult for businesses, especially small business, to afford to offer health care benefits to employees and their dependents.  It is estimated that one out of every five Californians are without health insurance.. 

“We are committed to offering reasonable solutions to the health care crisis,” stated Cynthia Schneider, Chair of the Corona Chamber Legislative Action Committee. “Mandating new taxes on business is not the best solution. There are other ways we can cut health care costs,” Schneider continued.

The Corona Chamber is seeking the support of the Office of Statewide Health Planning and Development (OSHPD) to review their guidelines and practices concerning plans and construction applications for health care facilities in California.  When a hospital construction project is submitted to OSHPD for approval, the plans and construction application is reviewed by OSHPD staff to ensure that both are complete. If it is determined that the plans and the construction application is complete, both enter into a queue for a subsequent array of reviews. After the reviews are complete, OSHPD will usually return the plans to the hospital architect, often requesting corrections.

The corrected plans are then sent back into OSHPD for a “back-check.” If the plans are then deemed acceptable by OSHPD, the process is complete. If there are still problems with the plans, they are again sent back to the hospital’s architect for further corrections until OSHPD agrees that the plans meet the building code requirements.

The Corona Chamber is concerned that the fees associated with the review process are enormous and review times are protracted and prolonged. Both the fees and the inordinately excessive review times drive up project costs, ultimately impacting a rise in health care costs for employees and employers, and ultimately the patient. Furthermore, consumers are impacted by delays in hospital services caused by the excessive review times.

“The Chamber is committed to working with OSHPD to streamline project timelines and costs,” stated Bobby Spiegel, Corona Chamber President and CEO. “We look forward to working with OSHPD in the coming months on this important issue.”

March 31, 2007

Chamber’s Position on Healthcare Reform

The Corona Chamber finalized its position on the proposed health care reform package urging the Governor and the state legislature to find ways to balance the issue of costs.

“We want our elected officials to know where we stand on serious issues that impact our businesses,” stated Bobby Spiegel, Corona Chamber President and CEO. “Health care reform is priority number one. However, we all need to realize that the most important public policy hurdle at this point is figuring out who will pay for the reforms.”

The cost of health care and the rise in the number of uninsured has made it difficulty for many employers, especially small employers, to afford health care benefits for their employees. A recent study estimates the average California family pays about $1,186 a year in health insurance premiums to cover the uninsured.

The state legislature will spent most of the spring and summer months debating the Governor’s and other health care reform proposals. The Chamber is committed to sharing its position on the health care crises during the debate.

The Corona Chamber of Commerce supports:

- Policies that encourage continued medical discoveries and innovations that improve quality of care;
- Actions that preserve the current voluntary employer-provided health coverage system;
- Efforts to contain the costs of premiums;
- Conformity to federal law on health savings accounts;
- Legislation to allow employers to offer more affordable benefit plans that allow choices in coverage;
- Opportunities to gain efficiencies and optimal outcomes by coordinating the fragmented health care delivery systems;
- Policies that prevent cost shifting from government-provided programs to the private sector;
- Work to curb the expansion of litigation in the health care system;
- Wellness and disease management education programs;
- Cost containment; and,
- Current and future health care professionals continue to provide their professional services independent and with their local hospital.

The Corona Chamber of Commerce opposes:

- Proposals that stifle research and development, enact price controls, encourage counterfeit drugs and interfere in the ability of employers and health providers to negotiate for lower drug costs;
- Proposals to establish a government-run health care delivery system in California; and,
- Current employer mandates.

January 22, 2007

Governor’s Health Care Reform Proposal to Impact Corona Businesses

The Governor unveiled his proposal to reform California’s broken health care system.  The plan calls for massive changes that would require all Californians to obtain medical insurance. The plan also outlines a significant impact on the business community. His plan will be debated in the state legislature over the coming months. “Everyone in California must have health insurance, if you can’t afford it, the state will help you buy it, but you must be insured,” Governor Schwarzenegger said. 

“The Corona Chamber has concerns about the Governor’s proposal,” stated Bobby Spiegel, President and CEO of the Corona Chamber. “Specifically, we are concerned about the expectation for our businesses to pay for mandatory health care resulting in negative impacts on Corona’s economic competitiveness. We are also concerned that the new costs mandated by this plan will far outstrip our businesses resources,” Spiegel continued.

The Corona Chamber is committed to holding the Governor accountable to his promise during his re-election campaign to not raise taxes.

“At this point in time we reserve our right to review the Governor’s health care reform package and we will announce our position once we review and debate his proposal,” stated Cynthia Schneider, Chair of the Corona Chamber’s Legislative Action Committee

The details of the Governor’s plan are outlined below.

Individuals: Requires all Californians to have health insurance or face unspecified tax penalties. The minimum health insurance benefit is a $5,000 deductible plan with maximum out-of-pocket limits of $7,500 per person or $10,000 per family.

Businesses: Requires businesses with 10 or more employees that don't provide health insurance to pay a 4 percent payroll tax to a fund that will help provide low-cost policies.

Doctors, hospitals: Requires doctors to pay a 2 percent fee and hospitals a 4 percent fee on revenues. Increases the reimbursement rates the state pays to hospitals and physicians for serving Medi-Cal patients by about $4 billion.

Insurers: Requires health insurance plans to cover all individuals, with limits on how much they can charge based on their age and where they live. Currently, health plans can refuse individual coverage to those with illnesses.

Patient care: Requires insurers and hospitals to spend 85 percent of their premium dollars on patient care.

Children, families: Covers all children by expanding Healthy Families and Medi-Cal programs and requiring parents to buy coverage. This would include illegal immigrants.

Adults: Expands Medi-Cal to cover low-income adults who don't have children.

Health accounts: Requires employers to establish plans so their workers can contribute pre-tax dollars to health insurance. Changes state tax laws to allow pre-state tax contributions to Health Savings Accounts.