Hatch Says Employer Mandate In Health Law Putting Jobs, Economy At Risk

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U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, today joined with three of his House colleagues in outlining the costs and consequences of the employer mandate in theВ  health care law, and called for its repeal as a means of spurring job creation and economic growth.В  Hatch was joined by U.S. Reps. Charles Boustany (R-LA), Pat Tiberi (R-OH), John Barrow (D-GA), and R. Bruce Josten, Executive Vice President of Government Affairs with the U.S. Chamber of Commerce at an event on Capitol Hill today.

“The President’s so-called jobs plan is frankly dead on arrival in the Senate. There’s bipartisan opposition not only to many of his stimulus proposals, but also to the tax hikes he wants to pay for it,” said Hatch. “And while there isn’t unanimous agreement on much around here these days, this bipartisan group of lawmakers standing here today has a solution that must be considered: Repeal the employer mandate in the partisan health law that’s stifling economic growth and job creation. This would help hiring and spur economic growth.”

The partisan health law includes a requirement that employers with over 50 employees offer health insurance to their employees – if they do not offer that insurance they will be forced to pay between $2,000 and $3,000 per employee penalty per worker.

Hatch has legislation, S.20, the American Job Protection Act that would repeal the employer mandate in the health law. Hatch believes the employer mandate is a threat to jobs and job creation, based on the following:

  • The Congressional Budget OfficeВ has concluded that it will result in lower wages, hamper job creation, and move more people from full-time jobs into part-time work.
  • According toВ a recent reportВ by the International Franchise Association, it will put 3.2 million jobs – you heard me right – 3.2 million jobs at risk.

The employer mandate destroys what works in America’s health system:

  • This mandate perversely incentivizes employers to not offer health insurance, because it’sВ less expensive to pay the penaltyВ than to offer coverage itself.
  • In fact, 30% said they would definitely or maybe decide to no longer offer health insurance to employees, because of the employer mandate, according to aВ recent survey. The employer mandate is impossible to implement
  • No one knows how it will be implemented or enforced. This kind of ambiguity and complexity makes it even more difficult for employers to offer coverage.

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