In his weekly address on Saturday, President Barack Obama said he is confident that healthcare reform can be achieved this year if all parties involved will keep pushing forward.
“It won’t be easy,” he said. “It will require us to lay a new foundation for our economy - one that gives our workers the skills and education they need to compete; that invests in renewable energy and the jobs of the future; and that makes healthcare affordable for families and businesses - particularly small businesses, many of which have been overwhelmed by rising healthcare costs.”
Many small businesses and start-ups haven’t been able to take hold in the market because employers aren’t able to supply healthcare and others can’t afford to switch jobs and lose the health insurance they have.
“These small businesses are the mom-and-pop stores and restaurants, beauty shops and construction companies that support families and sustain communities,” Obama said. “They’re the small startups with big ideas, hoping to be the next Google, or Apple, or HP. Altogether, they create roughly half of all new jobs.”
Those businesses are paying up to 18 percent more for the same insurance plans as larger businesses because they have higher administrative costs and less bargaining power. Many have been forced to cut benefits or drop coverage.
According to Obama, recent studies show that employers will pay 6 percent more to insure their employees next year and more than twice as much over the next decade. “Rising healthcare costs are undermining our businesses, exploding our deficits and costing our nation more jobs with each passing month,” he said.
Under Congressional proposals, small businesses would be able to purchase health insurance through an insurance exchange, where they can compare price, quality and services of a wide variety of plans - many of which, Obama said, will provide better coverage at lower costs than the plans they have now.
Small businesses won’t be required to cover their employees, but many that do will receive a tax credit to help them pay for it, he said. If a small business chooses not to provide coverage, its employees will receive tax credits to help purchase health insurance through the insurance exchange.
“And no matter how you get your insurance, insurance companies will no longer be allowed to deny your coverage because of a pre-existing condition,” said Obama. “They won’t be able to drop your coverage if you get too sick, or lose your job, or change jobs. And we’ll limit the amount your insurance company can force you to pay out of your own pocket.”
“As we move forward in the coming weeks, I understand that members of Congress from both parties will want to engage in a vigorous debate and contribute their own ideas,” Obama said. “And I welcome those contributions. I welcome any sincere attempts to improve legislation before it reaches my desk. But what I will not accept are attempts to stall, or drag our feet. I will not accept partisan efforts to block reform at any cost.”