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The plan accomplishes this by taking several steps that are similar to proposals already endorsed by major business organizations.
Our hardware and contracting business in Western Maryland with about 100 employees would be part of a statewide insurance pool. This way, we can secure the same volume-discount rates as large businesses.
With the state helping to limit the use of high-cost, low-impact medical services, our rates will drop further. The Wall Street Journal recently estimated that unnecessary medical services account for about a third of spending. The new plan also takes the burden of expensive care away from business insurance and into a state pool.
The part of this plan that troubles Rascovar is the funding mechanism. He calls it a "stiff tax." In fact, it is 2 percent of payroll. That's less than the annual Social Security cost of living adjustment, less than inflation, less than the average seniority pay raise. And, the reduction in health care costs for business like mine would significantly outweigh the added tax.
There are also alcohol and tobacco tax increases. But these will help save lives and reduce health expenses curtailing teen smoking and underage drinking, further reducing health insurance costs.
Recently, our company lost a manager with 28 years of experience. He left for another job. The reason? Health insurance. He said he loved his job at Naylor's, and our business certainly appreciated his management. But he believes his health issues are more safely covered by his new employer's more generous insurance plan. Under the more affordable health care coverage in the proposed Health Care For All Plan I would be more able to keep these good employees.
For the minority of businesses not offering insurance, this plan offers an affordable way to begin. Every manager would prefer to offer coverage. Lack of coverage is one of the main reasons that businesses can't attract employees. And many businesses can well afford to pay health insurance. Wal-Mart, for example, hardly covers its employees. Many receive health care courtesy of subsidies from other businesses when insured employees pay a surcharge for hospital visits. The surcharge pays for the uninsured Wal-Mart employee. And Wal-Mart is one of the most profitable companies in Maryland and the United States. This is not fair.
This is a pro-business plan. Precisely because these are economic tough times, Maryland business needs help with insurance. Naylor's Hardware can't afford to lose veteran managers. We can't afford to keep paying escalating health insurance premiums. We can't afford to subsidize profitable, giant corporations. Maryland business needs a bold solution to this problem and we need it urgently.
Jan Nayor is president of A.D. Naylor & Co. Inc., a 124-year-old, privately owned company in Garrett County.