Concerns about State proposals to cover the uninsured

Many U.S. companies have raised concerns that a number of recently announced state health insurance proposals "will drive up their expenses without solving the problem" of the uninsured, the AP/Long Island Newsday reports.

According to the AP/Newsday, smaller companies "are especially worried because they are less likely to provide health insurance than bigger [firms], and some of the proposals call for companies that don't provide coverage to pay into state funds." In addition, smaller companies have raised concerns that the amount they would have to pay could increase over time.

Michael Shaw, assistant state director for California at the National Federation of Independent Business, said, "Once a statute is on the books, it becomes easy to bring up the tax."

Some larger companies could benefit from the proposals because of a reduction in the number of uninsured residents through decreased health care costs, according to Christopher Renz, a principal with Mercer Health & Benefits.

Companies cover some of the cost of uncompensated care for uninsured residents through higher reimbursement rates paid to hospitals and other health care providers.

However, some of the proposals could require companies to provide health insurance to part-time or temporary employees, a mandate that would increase their health care costs, Renz said (Agovino, AP/Long Island Newsday, 1/20).