Legislative Alert

Action requested to Oppose H. 524

Contact your HOUSE MEMBER(S) TODAY!

A government-run taxpayer-financed health care reform bill, H.524, has emerged in the Vermont House of Representatives and will be debated by the full House early this week. This bill will devastate Vermont’s small-businesses! If you thought your health insurance premiums are tough to pay now, just wait until government picks your pocket for another TWO BILLION DOLLARS!

H.524 includes an implementation schedule through 2007; the Department of Insurance says there is no way to meet that schedule with existing resources. H.524 appropriates $1.7 million to begin the process of reorganizing and increasing the size of state government and to study how to overhaul Vermont’s current health care system this summer and fall.

H.524 as an insufficiently documented, assumption filled approach, with no cost containment measures; it does not provide the solution to the problem. Proponents of H.524 assume administrative cost savings of $500 million, and say future cost increases in the system will be controlled through “global budgeting”.

· Over $2 billion in new revenue will be needed – H.524 calls for the revenue to come from a new payroll tax and an income tax increase effect this July 2005.

o Income taxes are likely to increase by at least 134%.

o At least a 13% payroll taxes is likely to be required

· You Do the Math→ $35,000 salary x 13% = $4,550.

o AND those businesses doing the right thing, currently paying insurance premiums, will be required to continue to do so until the implementation of the new plan in 2007.

· Both national and local experts have challenged the proponents assumptions, as well as, their reliance on “global budgeting” to control costs.

o The term “global budget” translates into “rationing of care”, but this terminology is not used because of the negative connotation it denotes from Canadian examples.

· Upward pressure will be put on PROPERTY TAXES so that Vermont’s public sector employees (e.g. teachers and municipal workers) can maintain their present benefit package.

· Countries who have adopted government-run publicly financed systems are finding that they did not solve the problem and are facing serious issues:

o Their plans need additional infusions of money

o They are forced to make difficult decisions with respect to the rationing care to residents.

o In Canada, the average Canadian family pays 48% of its income in taxes and the waiting line for necessary procedures is lengthy.

If H.524 is not defeated:

· Vermont will be on the doorstep of being the first state in the U.S to enact a government-run, tax-payer financed health care system.

· H.524 will put in place a system comparable to Vermont’s current single payer, government-run, tax payer finance plan - MEDICAID.

· Vermont is currently ranked as the 6^th worst state in the nation – for its business climate.

· Vermont is currently ranked as the 17^th most tax burdened state in the nation – placing $3,190/person in local and state taxes alone.

· Vermonter’s already pay 10.4% of their income for state and local taxes, ranking Vermont as the 12^th worst in the nation for imposed tax burden.

· Vermont government expends more per-capita than 43 other states.

H. 524 is not the answer - it does not set up future deliberations; it sets up the implementation schedule for the imposition of a TWO BILLION DOLLAR government-run system. There are alternatives to this plan that can address the root of this problem – by slowing down the current rate of health care rate inflation. H.524 can be stopped, but you must get involved, voice your concerns and skepticism.

IMMEDIATE ACTION REQUIRED:

Your legislators need to hear from you TODAY - the economic viability of your business hangs in the balance and depends on your action. You must contact your legislators NOW - within the next 48 hours - or the decision will be made for you.

· Please fax (802-828-2424) your legislators - tell them to VOTE “NO” on H. 524. A note faxed on your letterhead will be delivered directly to your representatives. Legibly, neatly handwritten notes. Include your name, business name, and phone number.

· Call (802-828-2228) your legislator and ask for a message to be delivered saying VOTE “NO” on H.524 – be sure to leave your name, telephone number and business name.

· If you want direct (home) contact information for your representative(s), go to this web site:  http://www.leg.state.vt.us/legdir/legdir2.htm.

· If you do not know your representative(s), go to this web site: http://www.leg.state.vt.us/legdir/findmember.cfm

· And thank you for your immediate attention to this issue.

April 16, 2005