Healthcare Reform

Background: Given rising health care costs, the growing number of uninsured Americans and patient discontent with the status quo, the Obama administration and congressional lawmakers are interested in addressing health care reform. While agreement on national health reform remains divisive, there is strong bipartisan interest in addressing the building blocks for a better health care system—health information technology, greater access to consumer-friendly health outcomes data, and improved quality of care.

In recent years, in order to partially offset rising costs, metalcasters have been forced to shift a larger portion of the premium cost to their employees, implement higher deductibles, and require employees to spend more out-of-pocket on health care services.

Impact: AFS supports health care reform efforts but is concerned about proposals that limit employer flexibility in designing health benefit plans. Health benefit mandates can drive up the cost of health care plans for both employers and employees.

Outlook: President Obama has made health care reform a top priority and included a framework for health reform as part of his budget blueprint released on Thursday, February 26. A White House summit on health care is being planned for March.

In addition, Senators Ted Kennedy (D-MA) and Max Baucus (D-MT) continue their efforts to build consensus around a comprehensive reform proposal with the stated goal of moving legislation in 2009. Both President Obama and Sen. Baucus have discussed “play or pay” mandates as part of health reform that would require employers to offer health care coverage or pay into a government fund.

The Baucus White Paper requires the largest employers to provide coverage or contribute to a fund to help cover the uninsured and to offer a Section 125 plan. [Section 125 of the Internal Revenue Code allows companies to give their employees the opportunity to pay for benefits on a pretax basis. Pretax benefits lower payroll-related taxes for both the employer and employees. Section 125 offers several alternatives including - Premium Only Plans, Flexible Spending Accounts and Cafeteria Plans.] The Baucus plan also taxes some health insurance benefits to raise money for expanded coverage.

For more information, contact Stephanie Salmon, Metalcasting Industry Government Affairs Washington Office, at ssalmon@afsinc.org or 202/842-4864.

• Side-by-side Analysis of Three Key Health Care Reform Bills Pending in Congress
• Health Care Reform Position Paper