Small Business Coalition Forms to Send a Message: Don’t Pass a Health Care Plan That Puts Us out of Business

SACRAMENTO, Calif.--(BUSINESS WIRE)--Over 200,000 small businesses have come together over the last few weeks to urge the Governor and the Legislature not to impose an employer mandated health care program. The California Small Business Health Coalition is calling on decision-makers to fix the state’s broken health care system by first lowering costs and making coverage more affordable.

“If you operate a small business in this state you should be prepared to become part of the health care solution, but not if that solution falls completely on the backs of the small employers who will be forced to close down or layoff employees”

The California Small Business Health Coalition is growing quickly as small businesses across the state are very concerned about the potential impacts a health care reform proposal could have on their operations, such as being forced to reduce their workforce or pay lower wages.

“Small business wants to be part of the solution to provide health care for the state’s uninsured,” said Betty Jo Toccoli, president of the California Small Business Association and spokesperson for the California Small Business Health Coalition. “We support a plan that promotes individual responsibility and addresses the out-of-control health care costs.”

The coalition will oppose any health care proposals that disproportionately impact the small business community. Retailers, restaurants and any business that operates with higher employee head counts and lower profit margins will inevitably be negatively impacted by the high premium rates that are currently preventing several small businesses from offering coverage in the first place.

The group supports four major health care reform principles. First, the state must address the issue of affordability. Employers cannot provide coverage when the costs continue to rise and quality of coverage declines.

Second, the state must not place the burden of health care on California’s small businesses by imposing a mandate on employers. The public rejected this approach when they voted down Proposition 72 in 2004. Rather than improving the status of the small business employee, the mandate would have resulted in job losses – a significant consequence that will create even more problems.

Third, the state should focus on expanding access to existing government run programs that are augmented by federal funding. Over one million individuals are eligible for health care coverage under Medi-Cal and the Healthy Families Programs, but have not enrolled. The federal government funds 50% or more of these program costs and it should be a priority to enroll all eligible individuals.

Fourth, there should be incentives for businesses to offer various health coverage options for their employees. Small business employees have very diverse health care needs. A policy that fits the traditional family of four may be completely unnecessary for the younger “barista” at the coffee shop. Individuals who choose a low-cost plan should be able to capture most of the benefits from such choices otherwise they will have no incentive to economize.

“If you operate a small business in this state you should be prepared to become part of the health care solution, but not if that solution falls completely on the backs of the small employers who will be forced to close down or layoff employees,” said Aubry Stone, president/CEO of the California Black Chamber of Commerce and member of the California Small Business Health Coalition.

Some members of the California Small Business Health Coalition include the American Association of Business Persons With Disabilities, California Black Chamber of Commerce, California Small Business Association, Consumers First, Inc., Small Business Action Committee, Women Construction Owners & Executives, California Restaurant Association, and Los Angeles Metropolitan Hispanic Chamber of Commerce.