FOLSOM, CA – A Democrat is bucking his party to co-author legislation with a Republican in the hopes of delaying a tax related to the Affordable Care Act, also known as Obamacare.
California’s 7th Congressional District Rep. Ami Bera, D-Elk Grove, met with small business owners and insurance professionals Thursday morning at Brothers Boats in Folsom.
As lead sponsor of a piece of legislation dubbed “Small Business and Family Relief Act,” Bera said the bipartisan bill is gaining support but needs to be pushed through in a hurry.
The health insurance tax (H.I.T.) will “drive up the cost of insurance policies purchased in the fully insured market by as much as $500 per year, creating a substantial burden for the 88 percent of small businesses (purchasing) those polices,” according to a release issued by Stop the H.I.T. Coalition. The bill seeks to delay the tax by two years.
Chris Hodges, co-owner of Brothers Boats, said the gathering was put together hastily to let business owners know of the impending tax.
“If you don’t know, as small business owners, there is a 4 percent tax increase coming,” Hodges told the gathering. “I was unaware.”
Bera was critical of President Obama, the way in which the plan was implemented and said he is “doing what’s right” by sponsoring this bill.
“You can’t flip a switch Oct. 1 and (implement something of this magnitude) in one day,” Bera said. “My feedback to the administration would be this should be gradual.”
Bera, a physician, said there is already a shortage of medical professionals and to add so many to the insured health care world is problematic.
“You’re talking about bringing 30-50 million people into health care,” Bera said. “Where are they going to get that care?”
The economic recovery is fueled by small businesses, according to Bera, and to put a tax on them as they are finally getting back on their feet is the wrong thing to do.
“As the Affordable Care Act goes into implementation, we saw this health insurance tax as a direct hit on small business owners and individuals,” Bera said. “Now is not the time to hit small businesses.”
He said the tax could mean the deciding factor for a family choosing to take a vacation or make a purchase. For businesses, it could mean deciding not to hire someone or give raises to existing employees.
“This bill provides immediate relief from the tax,” Bera said. “We are pushing to get this passed before Jan. 1. Now is the time to step up front to get this law and make it better.”
Hodges said the boating business has offered health insurance for years but health care reform is putting them in a bad spot.
“We’ve offered health insurance to our employees for 20 years,” he said. “What we’re finding is some of our employees would be better served if we didn’t offer insurance because it would be better for them with the tax credit (to go through the exchange).”
Bera said it’s the very reason he is pushing for the passage of the bill.
“Why should you be penalized if you’ve always been doing the right thing by offering insurance?” he said. “That’s what bother me about this health insurance tax because it’s a direct pass through to people who have been doing the right thing.”
Bera said he received “pushback” from the Democrats regarding his decision to sponsor the bipartisan legislation.
“(They were) telling me not to do this but at the end of the day, I represent the people,” he said. “I think the Republicans will be on board (since it delays part of the Affordable Care Act). Let’s fix what needs fixing.”
Folsom City Councilwoman Kerri Howell said it is a monumental task to try to push through legislation in such a short time frame.
“This is a massive amount to get done in six weeks,” she said. “It would be difficult for the city to get things done in six weeks, let alone Congress.”
Robert Flautt, with Folsom Lake Bank, said his company would continue to “do the right thing.”
“We provide medical and dental and always have and probably will continue to do so, despite all the scare talk of (businesses) dumping all these people on the exchanges,” Flautt said.
He said the confusion is around the future.
“Were is the whole thing going in the next 12 to 15 months?” Flautt asked.
Bera agreed.
“If you don’t what six months from now will look like, you may not hire that (extra) person,” Bera said. “Let’s slow this (Affordable Care Act) down.”
Bera closed by saying he thought this bill was a “no-brainer.”
“I am optimistic about getting this legislation passed,” he said. “It’s bipartisan and it makes sense.”