American Small Business Partnership: An Overview

American Small Business Partnership:

Who Are We?
We started as a group of 8-10 small business owners/supporters who met for the first time in July 2009 out of concern for jobs and growth. The group of small business owners and supporters quickly expanded to over 100 in early August 2009. We are not tied to any one party. Our only goal is to protect jobs and the economic conditions that allow for job growth and prosperity. We selected the name American Small Business Partnership in August and created a website as a way to communicate with the quickly expanding group of supporters.

Are We Partisan?
No doubt our group, by its nature, is more conservative fiscally (having to be to be able to keep people employed and paychecks in the hands of our employees). We share fiscal conservative values that have traditionally been prevalent in both our local Republican and Democratic parties.

What is our focus?
Jobs and Growth! We are not interested in political parties...unless they are interested Jobs and Growth first and foremost. We are disgusted with both political parties (as are most Americans if you believe the national polls). We have chosen not to focus on social issues that divide us for three reasons:

1) Both parties use social issues to divide us.

2) We believe that most Americans share a desire to solve social problems, to be charitable and to treat others like they would like to be treated. However, unless we have an economy that is robust, that provides high employment and that allows individual Americans to create their own wealth (improve their personal financial situation), there simply won't be enough money from taxes or from charitable contributions to solve any of the social problems that we all want to solve.

3) Our focus in on Jobs and Growth and a serious concern that two pieces of legislation currently being considered would kill job growth----and would be particularly devastating to our local economy.

Healthcare Crisis
A July USA Today/Gallup Poll showed that when asked what goals was more important, cost control or expanding coverage. The response was telling:

* Under age 30 said expanding coverage was most important.
* Over age 30 said controlling cost was more important.

Analyzing the Healthcare Problem
We agree that have a national healthcare problem, but do not agree that it is a crisis. A problem can be solved, a crisis means you need to act and act now. To find any solution, you first have to understand the problem. So is the problem cost or coverage?

Coverage
One of the stated goals of healthcare reform is covering everyone. Those 29 years old and younger (according to July 2009 USAToday/Gallup) appear to agree covering everyone is the most important goal of healthcare reform.

Scope of the problem:

US Population: 310,000,000 Estimate of 2009 US population
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Stated Uninsured: 50,000,000 Commonly stated between 47M-50M
Between Jobs: -22,000,000 Estimated 4 months-US Census Bureau
Non US Citizens: -10,000,000 Not American citizens
Personal Choice: -9,000,000 Can afford, but choose not to buy
Truly Uninsured: 9,000,000 Cannot afford >> need help now
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People That Need Help Now = 3%

* Between 85-87% of Americans have coverage and over 80% like what they have.
* Is it a crisis or a problem when you have 3-5% of the population at risk?
* Can this be solved without drastically changing what we have in place now?


Cost Control
Those polled over 30 (according to July 2009 USAToday/Gallup) appear to agree that cost control is the most important goal of healthcare reform.

The burden of rising cost on individuals and on business is a serious problem that will continue to have a negative impact on Jobs and Growth. This problem may become a crisis, if we don’t find some solutions over the next few years.

Solutions:
1) Tort reform is very “low hanging fruit”. It has always been there for the taking, but politics keeps getting in the way. Estimates are that up to $2,000/year in cost is attributed to malpractice insurance cost, legal costs, time away from a medical practice dealing with frivolous lawsuits and practicing defensive medicine.

a) We must take the “ambulance chasing” out of our healthcare system and still reward those who have truly been harmed by malpractice.

2) We have a health national health problem. The amount of care is directly related to the health of the population. We believe we need a national education program directed at teaching healthy lifestyles.

a) We live in a very affluent society but one of the drawbacks is that we have unlimited access to food that our ancestors never had. Our work is generally much less physical than our ancestors. Statistics are now showing that 50-80% of the cost of care could be avoided by a healthy lifestyle. Until we address this issue, no healthcare reform will work.

b) If we have a CRISIS, it is a health crisis. Our seniors are now healthier than many of our youth and there are predictions that the length of life may decrease in the next several decades despite increased healthcare services.

c) We must address the health of the nation.

3) Employers now carry the burden for almost 70% of the insured population. Federal and State governments need to remove burdensome legislation that prohibits employers from implementing programs directed at improving the health of their workforce.

4) Portability and Pre-existing conditions: HIPAA and COBRA now protect employees who lose their jobs. COBRA allows employees to keep their coverage beyond employment for up to 18-36 months). HIPPA removed any pre-existing conditions when a person takes a new job and has not had more than a 62 day break in coverage.

a) Simply put, if you lose your job you can take COBRA for up to 18 months. When you are enrolled on your new employer’s plan you won’t have to worry about pre-existing conditions (as long as you kept coverage under COBRA, or did not have more than a 62 day break in continuous coverage).

b) Therefore it is absolutely critical that we keep cost affordable so that people between jobs can afford to keep their coverage under COBRA until their new coverage (at their new employer begins).

5) Cost Shifting/The Uninsured: A joint government/private sector solution is needed to subsidize the 3-5% of citizens that cannot qualify and/or afford insurance coverage. This solution may take time but would eliminate some of the cost shifting that takes place by providing access to a primary care physician through the normal insurance marketplace.

a) This would provide preventive care and education to those uninsured.

b) There should be steerage away from emergency rooms except for life, limb or organ threatening emergencies.

c) This would provide them with prescription drug coverage to help them manage disease and illness.

d) There should be required to see their primary care physician twice each year (to receive the subsidized coverage).

e) Behavioral treatment would be included in the plan and would be an important part of keeping them healthy.

f) We are not opposed to requiring care (as under an HMO) that would be designed to keep these citizens as compliant and as healthy as possible.

g) The ultimate goals would be to have them healthy and working and eventually no longer part of the subsidized group.

6) We cannot afford to insure non-citizens and it is not the responsibility of the U.S. taxpayer to fund coverage for non-citizens. Car can be provided by local charitable groups in local communities (these decisions need to be local and not mandated).


Summary:
We want solutions to keep cost affordable so that everyone can have access to health insurance. It is important for Jobs and Growth and important for our society as whole.

Fact 1: A complete overhaul of the private system is not warranted, or even logical.

Fact 2: “Government solutions” have not proven to be cost effective.

Fact 3: Historically the cost of government programs escalate out of control and well beyond the original intent.

Fact 4: “Government borrowing” and the increasing national debt is bad for jobs and the economy.

Fact 5: Additional debt and spending now will harm jobs and growth for decades.

Fact 6: The government solution being promoted is causing great division in our country.

Fact 7: Only a solution that is acceptable by the vast majority of American citizens will work.

**Let’s Slow Down and Work Together to Fix the System We Have Now!**


Addendum: Facts and Myths
Aside for the issue of cost and affordability that affects jobs, growth and our competeiveness in a world market; we agree that there are other concerns that all citizens should have about a government controlled healthcare system. The following is a list of answers to the often quoted “assertions” about a government run program.

Concern for Privacy Rights:
* We all should have great concern about individual rights and privacy – keeping our personal heath information out of the political arena and out of the hands of government bureaucrats (be they Democrat or Republican).

* That “non-elected” government employees could someday be making decisions about our individual health.

False: Government Solutions/Lowering Cost:
* The term, in itself, is an oxymoron.

* When you have been harmed by the government there is no legal remedy (you cannot sue). You can sue your insurance company.

* When you have a problem, you can meet with your health insurance company and solve it. Who can you meet with when you have a problem with the government?

Cost Saving Facts:
* The administrative cost of handling a claim under Medicare is more than150% higher than the cost in the private sector (Anthem, Humana, UnitedHealthcare, etc).

* The average government worker earns $120,000 in pay and benefits compared to the average private sector workers at $60,000.

* A private company can fire a worker who cannot perform. When do you ever hear of a government employee being terminated?

* Government workers continue to get pay increases and healthy retirement benefits, while most private sector employees have seen their wages frozen, have no pension plan and have seen the employer match on their 401k plans vanish.

* The government negotiating with doctors and hospitals is not a solution. Many doctors cannot afford to accept Medicare now. The government negotiating with providers will reduce the level of care for all of us and the access to medical care.

* Look at how politics has created the largest class of dependents our society has ever seen (our seniors). Because Medicare is a government program it is almost untouchable politically.

* Welfare is another example of a government program that went uncontrolled for years due to politics.

* It should be very clear that when the government has charge of any program that two things happen:

1) The cost increases (more than what was projected or ever intended).
2) Bad government programs NEVER go away.
3) The tax revenue collected for the program ends up being spent on other programs (they never spend the money where you expect it to go).

* Whether bailouts or cash for clunkers, you end up with problems (and very little bang for the taxpayer).

* Governments are never frugal with OTM (other people’s money).

Impact on Jobs and Growth:
* The cost of government NEVER goes down and government programs NEVER go away. It is viral.

* The average American worker will have to labor 111 days just to pay for federal spending, which is now consuming 30.36 percent of national income."

* Nationalized healthcare will crush the private sector and kill jobs and growth.

False: It’s a CRISIS:
* 85% of our citizens have healthcare they like and they want to keep it. That IS NOT a crisis.
We have a health crisis, not a health insurance crisis. The cost of health insurance is directly tied to the utilization (our health).

* Technology is part of the cost (outside of utilization) but this is what makes our system great.
Frivolous law suites add significant cost (that is driving up the cost and not adding value for members). We need tort reform (before we tear apart a system that works now).

* We are concerned that the idea of “universal” anything will eventually expand beyond healthcare…to the next CRISIS…that could infiltrate all aspects of our lives and individual choice.
* We are concerned that they type of debate that is taking place now (that divides us all) will only increase unless reasonable people come together to solve the PROBLEM and to send a message to both parties that we want sensible solutions.

False: The Uninsured:
* The number of people who cannot afford healthcare is estimated (by the government) to be 3-5% of the population (not 50M people).

* These people have access to Medicaid (state plans) if they enroll. Shore up Medicaid to fix the problem.

* We don’t need to cover people who can afford coverage but choose not to buy insurance.

* We should not cover non-citizens.

Prove It: Fixing Medicare:
* The statement has been made that “we” must fix Medicare and healthcare reform will do that.

* Prove it: Let us have a look at how you fix Medicare….see if you can….before you take over our entire healthcare system.

* The government has had control of Medicare from the beginning….why should we trust them now. It is bankrupt. You spent the money on pork along the way, now you are upside down on Medicare and you want to take over 1/6th of the economy with that track record.

False: Pre-Existing Conditions and Portability:
* HIPAA (Health Insurance Portability and Accountability Act (1996) provides:

* No pre-existing conditions can apply to new coverage if you have been insured for 12 months without more than a 62 day break in coverage.

* If you change jobs, you can use COBRA to fill the gap between the loss of the old coverage and the start of the new coverage.

* If you have less than a 63 day break in coverage, there is no pre-existing condition penalty.

* If you lose your job, you can keep most employer coverages for up to 18 months or longer (29 months if disabled and 36 months for death, divorce, and other circumstances.

* The truth is that most of people get their health insurance at work and therefore do not have a problem with either pre-existing conditions or portability.

Death Panels:
* Technically, no death panels. However, there is proof that they would force doctors to counsel for alternative end of life measures (instead of expensive treatment like chemotherapy).

* Technically, no death panels. However, the VA has recently put out a pamphlet for veterans that helps them decide if they are a burden on their family, if they would have a quality of life when disabled, you get the picture.

* Technically, no death panels. However, when a government employee (not elected but appointed) is making decisions on the benefit limitations provide under the “single payor” system or an “exchange’; and you include what they have already said and inferred, then a reasonable person should have concern.

* Technically, no death panels. However, if you fix prices for doctors and hospitals to save money and there is less access (and outcomes are worse), then you can assume that there will be rationing and that will be a de facto death panel.

* We only have to look around at the countries that have public healthcare to see examples of rationing and death panels in action.

Summary:
The current administration has not earned the right to make sweeping changes due to their complete failure to recognize the world around them (in a very short period of time). This is not a problem created just by the Democrats, but by our government as a whole. It is clear however, that the current party in control of the House, Senate and White House is completely out of touch with how our economic system works and therefore cannot be in charge of something that is so critical to our wellbeing as individuals and as a society.

The American Small Business Partnership