Washington Retail Insight

Hatch Says Support Building for Repeal of Health Care Employer Mandate

By J. Craig Shearman
Washington Retail Insight
August 26, 2010

Senator Orrin Hatch said this week that support is building for legislation he has introduced that would repeal both the employer mandate and individual mandate provisions of the health care reform bill signed into law this spring, citing letters from NRF and other business organizations.

“Our economy remains fragile,” the Utah Republican said during a speech in Salt Lake City on Wednesday. “Business owners in Utah and across the country have told me that the $2.6 trillion health law and its punitive employer mandate is a significant reason they aren’t putting more Americans back to work. That’s exactly why the employer mandate needs to be repealed. I’m glad these groups are joining me in this fight.”

Hatch cited letters from NRF, the U.S. Chamber of Commerce, the National Federation of Independent Businesses, and the National Association of Wholesalers. The letters support S. 3501, the American Job Protection Act, which would repeal the employer mandate.

“NRF has myriad concerns with and objections to the Patient Protection and Affordable Care Act,” NRF Senior Vice President for Government Relations Steve Pfister said in a letter to Hatch earlier this month. “This sweeping new law missed the opportunity to make serious progress in reducing the cost of medical care and coverage and instead imposed job-killing mandates on employers and individuals.”

Pfister noted that the retail industry provides one out of five U.S. jobs, “which would be jeopardized” when the employer mandate takes effect in 2014. In addition, NRF cannot support the individual mandate “given the lack of immediate and long-term progress in reducing the cost of medical care and coverage.”

The health care law requires that companies with 50 or more full-time employees either provide health benefits to all full-time workers or pay a $2,000 annual penalty for each one not covered beginning in 2014. Even companies that provide coverage face penalties if the insurance isn’t considered affordable. Retailers can determine their potential penalties by using NRF’s online Health Care Mandate Cost Calculator.

NRF argued during the health care debate that the added costs that would come under the employer mandate could not be absorbed by retailers in the still-struggling economy and would force companies to reduce hiring or eliminate positions at a time when jobs are badly needed.

The individual mandate requires individuals who don’t receive health care coverage from their employer, union, other organization or a government program like Medicare or Medicaid to purchase it on their own or pay a penalty.

Hatch’s bill to repeal the employer mandate has 12 cosponsors while his measure to repeal the individual mandate – S. 3502, the American Liberty Restoration Act – has 14 cosponsors. Both have been assigned to the Senate Finance Committee, where Hatch is the second-highest-ranking Republican.

© 2010 National Retail Federation