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DEMOCRATS’
HEALTH CARE ‘REFORM’: HIGHER COSTS FOR OREGONIANS, SMALL
BUSINESSES Oregon
Democrats’ New Tax on Insurance Premiums is Making Health Care More
Expensive “Thousands
of Oregonians and small businesses are facing medical insurance rate
increases in the double digits. Small business owners say they're struggling
and may cut benefits or drop plans altogether. “Insurers
cite the rising cost of medical care and the recession that has caused
Oregonians to drop insurance - meaning everybody else has to pay more. Most
insurers are also passing along a state premium tax designed to provide
insurance for children. “The
state insurance division in recent weeks has granted rate increases ranging
from 10 percent to 23 percent in premiums for small businesses - those with
50 or fewer employees.” (Oregon
Faces Double-Digit Health Insurance Rises, The Associated Press, 8/30/09) ‘It
Just Doesn’t Seem Like the Right Time to be Doing This’ “It's
true that insurance companies are allowed to pass the tax on to clients
through rate increases,’ said Cheryl Martinis of the state's Insurance
Division. ‘We expect most will do that.’ “Beginning
Oct. 1, the new tax that is in effect through 2013 requires insurers to pay
the state 1 percent of the gross premium amount paid by their members. “All
of the carriers are going to be passing the tax along,’ said longtime
Albany insurance agent Rick Rebel. ‘It is a burden and people aren't
happy.’ “Rebel
said insurers have had to tell policyholders that along with renewal
increases coming up for many in September, they will have another 1 percent
in October. “Carrie
McKay at McKay Truck and RV Center in Albany is one who is having a hard time
figuring out why the state would assess another tax in this economy. “The
last five years we've seen insurance rates go out of sight. We do what we can
to keep it down, raising deductibles and whatever but then this," she
said. "It may not sound like much, but we're trying to keep people
employed." McKay said she understood the insurers' position, but it
doesn't make it any easier to swallow. “It
just doesn't seem like a good time to do this,’ she said.” (Insurers
Pass Along Tax Hike, Albany Democrat Herald, Steve Lanthrop, 8/26/09) Speaker
Hunt: Tax Increase is ‘Cost Containment’ “With
the cost containment measures we’re implementing today, we’ll
take our first significant steps toward controlling health care costs and the
increases that are hurting small businesses.” (News
Release: Cost Containment Key to House Passage of Health Care Bills, Office
of the Speaker, 6/8/09) Gov.
Kulongoski: Oregon’s Reform a ‘Model’ for the Nation “Together
we have set Oregon on the path to create a health care system that will be a
model for the rest of the nation," Kulongoski said. “ (Governor
Signs Bill Assuring Kids Health Insurance, The Register-Guard, David
Steeves, 8/5/09) Republicans
Warned the Tax Increase Would Hurt Those Who Are Struggling to Afford
Coverage “Republicans
said the bill will raise health care costs for businesses and make it tougher
for some to provide health benefits for their workers. “The
Democrats' predatory tax increase will hurt small businesses and many
Oregonians who depend on their jobs for health insurance coverage,’
said Rep. Ron Maurer, R-Grants Pass.” (House
OKs Expansion of Health Care Coverage, The Associated Press, Brad Cain,
6/9/2009) ‘They
Were Right’ “Democrats
in the legislature said they wanted to tax the insurers. But they allowed the
insurers to pass on the tax. Republicans warned that the tax would be paid by
the people already struggling to come up with the premiums. They were right.
It ends up being another tax increase on employers, their employees or
both.” (Who
Pays? You!, Editorial, Albany Democrat Herald, 8/26/09) |
