[Congressional Record Volume 140, Number 53 (Thursday, May 5, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 5, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               AN EMPLOYER MANDATE HURTS SMALL BUSINESSES

  (Mr. McCRERY asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. McCRERY. Mr. Speaker, before I talk about employer mandates, some 
of us do need a grenade to hit a rabbit, so I take issue with that.
  An employer mandate would cost my State 15,300 jobs according to the 
American Legislative Exchange Council, the Nation's largest bipartisan 
organization of State and local legislators.
  A health benefits mandate on employers will not only force layoffs in 
the short run, but also make it significantly more difficult for 
employers to grow and hire people. Louisiana's economy faces continuing 
layoffs because of mounting defense cuts, the instability of oil 
prices, and the downsizing of major employers. At this time, we need to 
encourage job growth for small businesses--not place additional burdens 
on entrepreneurs who are quiet heroes trying to create more jobs for 
all Americans.
  The mandate proposed by President Clinton would require small 
employers to pay for 80 percent of the cost of a Fortune 100-style 
health benefits package that does not permit self-insuring, and does 
not permit low-cost, high deductible coverage. This would lower 
worker's wages, increase employer costs, and reduce incentives for 
employers to cut health costs
  Further, the premium subsidies in the President's bill would not flow 
to many above average wage companies in my State. For example, to be 
eligible for the full tax credit, a company would need to have fewer 
than 25 employees with average annual wages of $12,000 or less. Even 
with subsidies, the paperwork and cost burden of an employer mandate 
will destroy jobs.
  Such negative economic effects are not necessary to solve our 
problems in health care. The serious problems of our health care system 
can be addressed without employer mandates.

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