Tuesday, 30 March 2010 11:14
On Sunday, March 21, the House of Representatives passed the 900-page Patient Protection and Affordable Care Act, profoundly changing the way insurance companies and health care providers operate in this country.
The bill, which seeks to insure 32 million Americans and was passed without a single Republican vote, marks a huge win for President Obama, and a new level of party discord in Washington. In the words of Vice President Joe Biden, this WAS a "big #&$% deal."
But what kind of deal? Is the health care bill a prescription to help out small businesses? Or is it simply bad medicine?
Here are a few crucial points AIADA knows are contained within those final 900 pages. First, the bill establishes a tax credit for employers with fewer than 25 employees and that offer health coverage. It also creates an excise tax on employer health care plans and penalizes individuals who are uninsured. For individuals earning more than $200,000 ($250,000 for married couples) the bill increases the employee portion of the hospital insurance tax from 1.45 percent to 2.35 percent and a new tax of 3.8 percent will be extended to unearned income.
New provisions prevent insurance companies from refusing to pay for the treatment of certain preexisting conditions and insuring dependents until their 27th birthday. Finally, the new law raises the threshold for the itemized deduction for unreimbursed medical expenses from 7.5 percent to 10 percent. All of these pieces of legislation will be phased in between 2010 and 2018. The employer mandates/penalties that will force employers to offer coverage become effective in 2014.
Obviously, a lot of details still need to be hammered out.
Despite all of the unknowns, one thing is clear: a change is coming to the way health care operates in our country. And for good or ill, this legislation will fundamentally alter the way we run our businesses. Fortunately for dealers, AIADA is actively following this issue in Washington, and is poised to share any and all information that is relevant to our businesses. AIADA is unique in that it is focusing strictly on what this bill means for small businesses, and how the dealer community can best address it.
To stay on top of the latest health care news, make sure to read your FirstUp every day. And make sure that you are a part of AIADA's Legislative Action Network. Most importantly, register now to come to Washington, D.C. in May to attend AIADA's annual Auto Industry Summit. While in D.C., AIADA will arrange for you to meet with your legislators face to face, and let them know how their votes impact your bottom line. The Summit, held over May 19 and 20, may very well be the most important 48 hours of your year.
As a dealer, I understand that it can be difficult to pry yourself away from your store for two days. But think of it this way: attending is a small action that will absolutely help to protect your livelihood and the security of your employees and their families. Think of it as preventive medicine - for your business.
Rick DeSilva
AIADA Chairman
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