EMPLOYMENT BENEFITS: Insurance Companies, Small Business Oppose New Healthcare Plan

January 18, 2010

Sacramento - Medical groups, small businesses, and insurance companies which follow manage-care policies have opposed a Senate health bill that will impose higher annual tax on them while excluding employers who pay their workers’ health insurance.

In a statement, health insurer Kaiser Permanente, which covers nearly 6.6 million Californians, said the proposed bill will hit the state hard.

“If the reform in taxes will push through, it should at least apply to all health plans”, a Kaiser representative said. Meanwhile, California Association of Physician Groups Chief Executive Don Crane said that if the health care overhaul pushes through, the state will pay three times more annual taxes than other states.

About 77 percent of California’s population are covered by managed-care policies compared with a national average of 48 percent.

Other critics also said the proposed legislation will have a negative impact to workers who purchase their own insurance and small businesses who provide health coverage to their employees.