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A proposal from Montgomery County Council member Nancy Navarro to require that county contractors provide health benefits to same-sex partners of their employees has the noble goal of equality in its heart, but is too threadbare to be considered. Also, by requiring private companies to offer certain types of coverage, the county tiptoes dangerously close to government interference in the private sector.
The bill, co-sponsored by seven other council members, is a testament to the county's pride in ensuring all its employees have equal coverage, Navarro said. What's missing is a full picture of the financial and logistical implications of this legislation.
First, it's quite possible that certain companies that don't choose to, or can't afford to, provide this coverage, will not be able to compete for county bids. That would reduce competitiveness for contracts and could drive up prices. Even companies that do provide coverage would likely pass on the cost to the county, also increasing prices. Navarro says the jurisdictions she's studied that have similar programs haven't experienced those scenarios, but this legislation certainly creates the possibility.
Another problem is the implementation. It's unclear how the county would ensure that contractors are providing the appropriate level of coverage, and County Council member Mike Knapp points out that the county already has challenges in administering cost-of-living adjustments for nonprofit contractors. This bill could very well add an additional burden to human resources staff.
Finally, it's important to consider the economic climate in which this bill is being proposed. Many businesses that already have contracts with the county have been cutting back on jobs and benefits in recent years. By adding more to their annual costs, businesses may have to choose between added benefits and saving jobs.
In her bill, Navarro plans to request a fiscal impact study and an economic impact study. Passing the legislation, however, without having those already completed, could create unintended costs for county taxpayers.