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Study Shows Economic Impact of Health Care for All Plan
Business Leaders Endorse Plan, Stress Need for Fairness
 
 
BALTIMORE- Maryland's proposed Health Care For All Plan can guarantee health care security for Marylanders without causing businesses to leave the State or causing a net loss of jobs in the State, according to an independent economic study released today by the Maryland Citizens' Health Initiative.
 
The study, conducted by the highly respected Lewin Group, estimated that between 4,400 and 10,300 minimum wage jobs could disappear, but that between 7,000 and 11,000 new jobs could be brought to Maryland by increased federal revenues generated by the Plan. In addition, the Lewin Group concluded that it was "unlikely" that small businesses would leave the state after the Plan was enacted but that some new large firms might be attracted to Maryland because they would no longer have to cover the cost of uninsured people using hospitals. Many Maryland companies who provide full health coverage for their employees are now paying extra to cover hospital costs of the uninsured - a cost that would be eliminated under the Plan.
"The Health Care For All Plan is good for Maryland business," said Carl W. "Bill" Struever, CEO of Struever Bros. Eccles & Rouse Inc., one of several business leaders supporting the Health Care for All plan. "By simply requiring all firms to pay their fair share of health care costs, the Plan would guarantee Maryland workers health care security and help create a fair and level playing field for all business. This will make our workforce more productive and make Maryland more attractive to new businesses."
 
Joseph Hopkins, a Baltimore small businessman who does not now offer health insurance to his employees, also strongly supports the Plan. Mr. Hopkins said, "I cannot provide health care now because my competitors don't and I would be under bid. My company will be much better off when all companies, including mine and my competitors', are required to pay their fair share and I can offer health care to my workers. The Health Care For All Plan is pro-worker and pro-business."
 
Lisa Jackson, the President of the Baltimore Minority Contractors Group, added that her organization was an early endorser of the Health Care For All Plan. Ms. Jackson said, "By creating a level playing field for all small businesses, the Health Care
For All Plan benefits both companies and their workers. The Baltimore Area Minority Contractors Group will work hard to make the Health Care For All Plan a reality."

The Health Care for All Plan would require all Maryland private employers to pay a 4.5% payroll contribution to help care for the uninsured (8% of the business employs more than 10,000 workers). Businesses would receive a tax credit for all they spend on health care (up to 4.5% of payroll or 8% of payroll). Further, the payroll contribution would only apply to earnings of up to $87,000 per employee.
 
Many firms would see a savings due to reduced uncompensated care costs, which is the amount added to each health insurance policy in the state to pay for care to people without insurance. These companies would see an average drop of $132 per employee per year in health care costs. Firms who currently spend less that 4.5% (or 8% if over 10,000) of their payroll on health care costs would pay the difference between what they spend and the 4.5% (or 8%) assessment to the State. The average amount paid by these firms would range from $780 per worker per year to $924 per worker per year, depending upon the size of the payroll and the amount of benefits the firm currently provides.
 
"Health care for all is good for everyone and this study dispels the myth that health care is bad for business," said Dr. Peter Beilenson, Baltimore City Health Commissioner and Chairman of Health Care for All. "Health is one of Maryland's leading economic engines. By expanding health care to all we help expand that engine and will improve the lives of hundreds of thousands of our citizens."
 
The Maryland Citizens Health Initiative established the Maryland Health Care for All! Coalition in 1998. It is a grassroots coalition of hundreds of diverse organizations, including religious, health, community, labor, and business groups from across Maryland, www.healthcareforall.com.
 
The Lewin Group is a premier national health care and human services consulting firm with more than 30 years of experience finding answers and solving problems for leading organizations in the public, non-profit, and private sectors, including community groups like ours and business groups like the US Chamber of Commerce.
 
 
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Last modified: October 28, 2003
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