CBS Sees 'Bitter Medicine' in Employer Mandates to Buy Health Insurance

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On Thursday’s CBS Evening News, correspondent John Blackstone gave attention to the danger for small businesses if the final version of health care reform requires employers to provide health insurance for their employees as he highlighted two business owners – one who fears health care reform could close down his night club business while the other is more optimistic about how her business would be affected. Substitute anchor Jeff Glor set up the report: "As we mentioned earlier, the health care bill passed by the Senate today would extend coverage to 30 million Americans. A key element is a mandate forcing many companies to pay for their workers' insurance or pay a fine – a very difficult choice for struggling small business owners."

Blackstone related that "the prescription for change includes some bitter medicine, mandates requiring companies to pay for health insurance or pay a fine." While Blackstone at one point argued that small business owners are likely to benefit "from insurance exchanges in the reform plans which should hold down premiums in many cases by helping small businesses join together for greater buying power," the CBS correspondent also gave substantial attention to nightclub owner Jay Siegan’s fears that " the music will go silent if he's required to provide insurance."

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And even while kennel owner Virginia Donohue voiced support for health care reform, as she claimed health insurance is a "basic human right," Blackstone also informed viewers that Donohue, who already pays for health insurance for her employees, "admits she can barely afford it." On the down side, a clip of Donohue was shown complaining about large increases in her health insurance premiums, but Blackstone did not take the opportunity to pass on the argument that government regulations contribute to high health insurance.

Below is a complete transcript of the story from the Thursday, December 24, CBS Evening News:

JEFF GLOR: As we mentioned earlier, the health care bill passed by the Senate today would extend coverage to 30 million Americans. A key element is a mandate forcing many companies to pay for their workers' insurance or pay a fine – a very difficult choice for struggling small business owners. More now from John Blackstone in tonight’s "Eye on Health Care."

JAY SIEGAN, BUSINESS OWNER: I'm Jay Siegan. I own the Red Devil Lounge in San Francisco.

VIRGINIA DONOHUE, BUSINESS OWNER: I'm Virginia Donohue. I own Pet Camp in San Francisco.

JOHN BLACKSTONE: Two owners of small businesses whose concerns about health care reform are as different as their companies. Virginia Donohue owns a boarding kennel for dogs and cats. Her 20 employees all get health insurance.

DONOHUE: We think health insurance is a basic human right, and in this country, you get it through your employer.

BLACKSTONE: At Jay Siegan's nightclub with 15 employees, nobody gets health insurance.

SIEGAN: We want to take care of our employees, of course.

BLACKSTONE: But right now you can't afford to pay.

SIEGAN: Right now I cannot afford to put all our employees on health care. I cannot afford it.

BLACKSTONE: Donohue admits she can barely afford it. Since 2000 the cost of covering her workers has tripled from $30,000 to $90,000 a year while benefits have been cut back. This year alone, premiums rose 30 percent.

DONOHUE: Everybody's revenues are down. You don't see anybody getting raises. There is no cost of living increase. What justifies 30 percent?

BLACKSTONE: The prescription for change includes some bitter medicine, mandates requiring companies to pay for health insurance or pay a fine. After an outcry, the House bill exempted companies with payrolls under $500,000. The Senate bill exempts those with fewer than 50 employees. Jay Siegan is grateful he's unlikely to fall under the mandate

SIEGAN: We’ 're just hanging on. We need breaks.

BLACKSTONE: But given her payroll size, Donohue's business could come under the mandate. Since she's already providing health coverage, she's looking at the upside.

DONOHUE: There's a tax credit for companies, and I’d love that.

BLACKSTONE: For Donohue, the credit could save $7,000 to $10,000 in the first year under the House bill, but less under the Senate version. Both Donohue and Siegan could benefit from insurance exchanges in the reform plans which should hold down premiums in many cases by helping small businesses join together for greater buying power. Now, small firms pay an average 18 percent more for health insurance than big ones without a significant cost break. Jay Siegan says the music will go silent if he's required to provide insurance.

SIEGAN: I’d want to see it happen one way or the other. I just need to see it happen in a way that doesn't shut down a bunch of businesses in the meantime.

BLACKSTONE: Virginia Donohue says almost anything is better than what we have.

SIEGAN: It's not working. The system is completely broken.

BLACKSTONE: Two owners looking for reforms that help their workers stay healthy while helping their businesses survive. John Blackstone, CBS News, San Francisco.

—Brad Wilmouth is a news analyst at the Media Research Center.


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Merry Christmas

Merry Christmas NB and MRC!

Withdrawal of the consent to be governed!

The amazing hatred by Democrats towards small employers will finish off the economy for good. Which is EXACTLY what the socialists desire. Then, the politicians can be in complete charge of all "economic planning". Just like their idols and models in Soviet Union and Old East Germany. It will require a restoration of the Constitution, perhaps armed, to free us of the yoke of these megalomaniacs. The people are coming around to the notion of withdrawing their consent to be governed by these animals like Reid and Pelosi, Landreu and Nelson.. A regime that tries to govern without the consent of the governed is by definition, a tyranny. And a tyranny is exactly what we have today. 

I don't understand that thinking!

I really don't understand it, this desire of control like this.  In the end, what do they gain?  It's never benefitted any other countries that have gone down this path and in the other countries that practice what I call an attempt, that I hope will fail,  to force on us, it's a situation that gets worse and worse in those countries year after year.

And to do this in this country with as many people as angry as we are about this, how do these traitors hope to get away with this?  What's their ace in the hole?  What do they have up their sleeve?  Why are they so supremely confident that we're all going to just simply grab our ankles for this?

-Jon

jon

I don't understand it either. It has never worked where ever it has been tried and even in the European countries where it is touted as working it doesn't work all that efficiently. Europe suffers from chronic high unemployment, high prices and very high taxes. Of course the elite gets to tell us what to do without recourse and they will benefit and not have to live the way the masses will have to live. The elite won't have to partake of the 'new' healthcare they'll just fly somewhere or live somewhere where good care is available or taxes are lower. Socialism/Communism/Fascism/Totalitarianism or whatever is disguised as a utopian shangrila but always turns into hell. It is irrational but irrationality can last for very long periods of time and that is why I am afraid for the future of this country. We feel it can't happen here but it can happen anywhere anytime if the conditions are 'right'. There will be no economic recovery if every employer has to provide health care to its employees. The burdens on the small business owner in certain businesses will keep owners from hiring and probably will have to let more employees go to cover ever increasing costs.

"Somehow, I told you so, just doesn't quite say it." Will Smith in 'I, Robot.'

Looney Toons

The politicians are mentally ill. They feel this deep seated compulsion, this NEED to control everyone and everything. Similar compulsions are felt by serial killers. THEY NEED!!!!. Both groups are equally crazy as a bedbug.

BETTER LIVING THROUGH STATE CONTROL...

 The politicians are NOT mentally ill, the ones pushing hardest for this crap know exactly what they are doing & what they want the end result to be. They are ANTI-CAPITALISTS, & their goal is to kill capitalism in this country.

Look at the Obama thug-ministration compaired to other administrations in terms of what percentage of people in the administration worked in the private sector or have ever met a payroll. If you go back over the last 70 or so years, most have had between 30-60% with private sector experience, the Obama thug-ministration...8%. Almost everyone there has neve EARNED an honest living, they are all "activists" or come from our universities. These people would be nothing without the state, so it's easy to why they would champion state control of everything.

 

"...How blind can you be, don't you see...

...that the gambler lost all he does not have..."  

Nightwish

A great idea, I bookmarked it.

Here's a good idea, h/t to a WeaselZippers poster:

http://www.tothepointnews.com/content/view/3897/2/

Make sure you click the jury nullification link. This could work better than armed struggle. The left already blames ALL violent acts on us as it is.

And the next link at the bottom sends you to the real story of Thanksgiving.

And Merry Christmas!

  MSM - shaping all the perceptions you need to believe, then confirming it with a poll.

As a Fromer small Business owner

We small business owners who could not afford policies on our own for our employees could in fact through a local small businessman's association get a group policy by grouping together with other small businesses to get lower premiums.  

The biggest problem was many small business do not make enough to pay for full coverage health insurance and to take deductions from employees either on minimum wage or slightly above cause the employees hardship because their pay was less and they needed more just to survive.

it is small business that will suffer the most from this bill seeing small businesses are owned by middleclass population who are being targeted to pay for health care. 

It is the elite extremely rich like Obama, Bush, congressmen, Senators and Representatives, Multinational corporation owners like Ted Turner, Bill Gates, Coca cola, Pepsico, Palmolive, and the like that need to be the ones footing the bill not the middle class and small business owners.  the big business will see virtually no harm done them as they already get large group insurance via their Unions that represent the workers.

Here's a fact that's worth the knowing, So treasure and mark it well.  When the mind is through with growing, the the head begins to swell.             Sir Nosmo King

Association Group Rates

In Colorado small businesses within an industry group can band together for Workers' Comp, but not for health insurance. The law does not allow one hundred companies with twenty employees to get the same rate as one entity with 2000 workers, Yet the politicians pander for our votes by  exclaiming the fact that small businesses create the new jobs. It's time to throw the current group to the curb.

you got that right

they are biting the hand that feeds them. it is the middle class that finance america not the rich and not Washington.

It's the Old Side A/Side B - Let's Do Something Thing.

This isn't news. This is just a reporter asking for opinions from people and then editorializing over the top of it. Yet, this kind of pabulum is business as usual over at the alphabet networks. It's quite Hegelian, actually. 

-----
www.Random-jumbled-thoughts.blogspot.com

It's True

It's certainly true that the health insurance industry needs an overhaul, in this country, the problem is the Democrats were the wrong party to do it. 

If, as it looks now, the Republicans win big and repeal this monstrous bill, they'd better have a viable alternative ready and waiting.  There is no doubt the status quo isn't a solution.  THere's also no doubt they had 10years to do this and did nothing, so there's a lot of work to do, Republicans.  

Election 2008-God's way of showing us that elections count.  

live free or die

As a business owner I will not subscribe to mandated insurance.

It's a little late for CBS to be worried about 'Bitter Medicine'

As the out-of-control congress has already crammed it down our throats.

Only a formality or two remains before it takes effect.

-Dave

This 'Poison Pill' is going

This 'Poison Pill' is going to be the death of the dem party...let alone this country.

...Get ready for the party hats!

'Doubling down on stupid is not a particularly good idea'~Breitbart

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