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Clinton, Bill

Small Business Owners Divided on Clinton Health Care Reform Plan

Strategic Insights

— 2 min read

The debate over the Clinton health care reform plan's impact on small businesses heated up today, with some owners welcoming the proposal and others vehemently opposing it. At a White House event, President Clinton invited 13 small business owners to discuss the plan's potential benefits for their companies. However, small business leaders are concerned about the employer mandate, which would require them to pay 80 percent of their workers' health insurance costs.

President Clinton argues that most companies already cover 80 percent of their employees' health insurance, and his plan would reduce their costs. He believes the plan is "good for small business" and necessary to create more jobs in the country. However, Republicans and some Democrats, like Congressman John Dingell, are opposed to the employer mandate.

The National Federation of Independent Businesses (NFIB) has expressed concerns about the plan, with Mark Isocowitz stating that small business owners hate mandates and payroll taxes the most. The NFIB has organized a press conference to reiterate its objections to the employer mandate. Meanwhile, Senator Tom Daschle, a supporter of the plan, believes that small businesses will financially benefit from it, saving $90 billion annually.

However, NFIB's Isocowitz disputes this estimate, citing a Congressional Budget Office figure showing the plan would fall short by $72 billion in its small business subsidies over five years. He warns that the government may not follow through on its commitments, leading to higher costs for small businesses.

Key Takeaways:

  • The Clinton health care reform plan proposes an employer mandate that would require small businesses to pay 80 percent of their workers' health insurance costs.
  • Some small business owners welcome the plan, while others oppose it, citing concerns about the employer mandate and increased costs.
  • President Clinton argues that most companies already cover 80 percent of their employees' health insurance and his plan would reduce costs.
  • The National Federation of Independent Businesses (NFIB) has expressed concerns about the plan, with Mark Isocowitz stating that small business owners hate mandates and payroll taxes.
  • Senator Tom Daschle believes that small businesses will financially benefit from the plan, saving $90 billion annually.
  • However, NFIB's Isocowitz disputes this estimate, citing a Congressional Budget Office figure showing the plan would fall short in its small business subsidies.

Statistics:

  • The proposed employer mandate would require small businesses to pay 80 percent of their workers' health insurance costs.
  • The Clinton health care reform plan estimates that small businesses would save $90 billion annually.
  • However, the Congressional Budget Office estimates that the plan would fall short by $72 billion in its small business subsidies over five years.

Sources:

  • Robert Siegel, NPR (date not specified)
  • Joanne Silberner, NPR (date not specified)
  • IdRef="3" (President Clinton)
  • IdRef="4" (Congressman John Dingell)
  • IdRef="5" (Mark Isocowitz, National Federation of Independent Businesses)
  • IdRef="6" (Senator Tom Daschle)

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