Clinton Addresses Small Business Concerns on Health Care Reform

President Clinton met with a group of small business owners to discuss his health care reform plan, assuring them that the proposal would benefit them on balance. He acknowledged concerns that some small businesses would pay more under the plan, but pointed to the creation of state-based alliances that would allow them to pool their purchasing power and obtain better coverage for less money. Clinton also highlighted the cap on total health care costs for participating companies at 7.9 percent of payroll, with discounts for low-wage companies and 100 percent tax deductions for self-employed and independent contractors.

Key Takeaways:

• The Clinton health care reform plan would require companies to pay 80 percent of the cost of insurance premiums, but this would be offset by the creation of state-based alliances that would allow small businesses to pool their purchasing power and obtain better coverage for less money.
• The plan would cap total health care costs for participating companies at 7.9 percent of payroll, with discounts for low-wage companies and 100 percent tax deductions for self-employed and independent contractors.
• The plan would provide a more level playing field for small businesses, as their competitors who are larger businesses would also be required to pay the same percentage of health care costs.
• Clinton praised the 'real life experiences' of the small business owners who spoke to him, highlighting the challenges they face in providing health insurance to their employees.
• The President acknowledged that some small businesses would pay more under the plan, but emphasized that this would be a small minority and that the benefits of the plan would outweigh the costs.

Statistics:

• Small businesses currently pay as much as 35 percent more than big businesses for the same health coverage.
• The Clinton plan would require companies to pay 80 percent of the cost of insurance premiums.
• The plan would cap total health care costs for participating companies at 7.9 percent of payroll.
• Statistics on the number of jobs generated by small businesses or the number of low-wage companies that would benefit from the plan are not provided in the text.
• The plan would offer 100 percent tax deductions of health costs for the self-employed and independent contractors.

Sources:

• Clinton's statement on health care reform, exact date not specified.
• The text of the Clinton speech is not provided in the source.
• The plan's proposal to create state-based alliances to pool purchasing power for small businesses is mentioned in other parts of the text.