Commentary Page

A plan to increase health coverage, reduce expenses

By Charles Johnson, Petey Green and Walter Middlebrooks

May 31, 2009

As presidents of three Maryland black chambers of commerce, our goals include promoting economic stability while eradicating barriers to growth within Maryland's black- and minority-owned business community. But it is difficult to promote economic stability while insurance costs are skyrocketing.

The Maryland Health Care for All! plan (www.healthcareforall.com) offers a solution that is both fair and practical.

Two-thirds of Maryland workers enjoy company-sponsored health insurance, but our members are being forced to cut back on these benefits. Most businesses spend 7 percent to 15 percent of payroll on health insurance - and we know those rates will rise. Our members cannot expand their businesses and add new employees because of high health care costs.

The present health care marketplace doesn't work well for our small business members. With their small work forces, they can't justify a human resources team to examine ways to cut costs, as a large business can. We present a fairly small risk pool to insurance companies, which like to spread the cost over a large number of premium payers. Consequently, their overhead costs as part of their premiums are higher. Another reason health insurance premiums are high for everyone is that some businesses that can afford to provide adequate health insurance fail to do so. Their employees do, however, get emergency hospital care when they need it. This care is paid for by increasing the insurance premiums of businesses that do provide health care coverage for their employees - a situation that is unsustainable and unfair.

The Maryland Health Care for All! plan would achieve quality, affordable health care for all Marylanders. It is a comprehensive, fiscally responsible and business-friendly plan devised by some of Maryland's top health care experts. The plan would reduce health care costs in several ways:

• A state-regulated catastrophic reinsurance plan for all Marylanders would help cover costs above $35,000 a year - roughly 10 percent of medical spending (insurers would be required to pass the savings along to people purchasing insurance).

• A large health insurance pool would be created to provide small firms and the self-employed access to health coverage with low administrative overhead.

• Because there would be fewer uninsured Marylanders, health insurance plans would be less responsible for uncompensated care.

All businesses would pay a 2 percent payroll tax, but this tax would be offset by lower health insurance premiums. As a result, businesses that now provide full health care coverage for their employees would save money. For firms not sponsoring health insurance, this plan provides an affordable way to begin - or perhaps to begin again. The plan would also offer businesses what is, in effect, a human resources department to steer patients to the best, most cost effective care instead of unproven and expensive treatments.

In order for small businesses to thrive and grow, we need quality, affordable health care. This is a plan that gets us there.

Charles Johnson is president of the Greater Baltimore Black Chamber of Commerce. The Rev. Walter E. Middlebrooks is president of the Black Chamber of Commerce of Anne Arundel County. Hubert "Petey" Green is president of the Prince George's Black Chamber of Commerce.