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June 11, 2009

NRF Urges Senate Committee to Reject Employer Mandate and other ‘Bad Reforms’ for Health Care

For Immediate Release
Contact: J. Craig Shearman (202) 626-8134
shearmanc@nrf.com

Read full letter

NRF Urges Senate Committee to Reject Employer Mandate and other ‘Bad Reforms’ for Health Care

WASHINGTON, June 11, 2009 – The National Retail Federation today commended the Senate Health, Education, Labor and Pensions Committee for revising a “worst case scenario” plan for health care reform, but urged the panel to reject proposals for a pay-or-play employer mandate and other “bad reforms” that could drive up costs without addressing underlying problems with the health care system.

“We were strongly disappointed by the first draft of this legislation that publicly emerged last Friday,” NRF Senior Vice President for Government Relations Steve Pfister said, citing a pay-or-play mandate, a public plan option and restrictions on the Employee Retirement Income Security Act. “We view that 170-page first draft of this legislation as a potential worst case scenario for the retail and restaurant industries.”

“”We commend the committee for taking a fresh look at alternatives for a very wide range of issues of concern,” Pfister said, referring to a revised 615-page draft bill released this week. “We are hopeful that the committee, as it begins to mark up the bill next Tuesday, will reach a satisfactory outcome on each of the issues of our primary concern that will collectively allow us to support the underlying bill.”

“NRF continues to be committed to the goal of comprehensive health care reform,” Pfister said. “We cannot, however, accept bad reforms in order to gain other more positive reforms in addition. Retailers cannot accept additional health coverage costs, mandatory coverage and contributions or other interference with the voluntary provision of health benefits.”

Pfister’s comments came in a letter to HELP Committee Chairman Edward Kennedy, D-Mass., and Ranking Member Michael Enzi, R-Wyo. The panel is scheduled to hold a hearing on the legislation this afternoon and begin voting on the measure next week.

Pfister said NRF would oppose and count as a key vote any bill including a pay-or-play employer mandate, a public plan option or restrictions on ERISA protections.

A mandate “would drive up the cost of goods and drive down employment and do nothing ultimately to address the root causes of increasingly expensive health care and coverage,” Pfister said. NRF opposes mandates regardless of size of employer and for either full-time or part-time workers.

Pfister said a public plan option is a “direct recipe” for cost shifting similar to that already seen from inadequate Medicare and Medicaid reimbursements to health care providers. Such plans would not be necessary once states conform to federal rating standards and market conduct rules, and with competition expected under the legislation’s proposed “gateway” system for subsidizing individuals who buy private insurance.

Last week’s draft proposed restricting self-insurance under ERISA to employers with 250 or more workers, and the new draft would allow the Secretary of Labor to set a threshold, but Pfister said NRF would oppose ERISA restrictions for any size employer.

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2008 sales of $4.6 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.

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