Calling it the "death knell" for Maryland small business, Delegate Richard C. Matthews, R-Carroll, opposed the proposal submitted by a gubernatorial panel to make small businesses provide health insurance for their employees or pay a tax into a fund.
The difference between this proposal and various "no-frills" health insurance proposals being considered by the General Assembly is that this proposal is mandatory and the others are optional, he said.
The proposal, recommended by the Governor's Commission on Health Care Policy and Financing, "grabs small business by the throat and says buy insurance or pay a tax. Either way, you're going to pay," he said.
The commission's proposal applies to businesses that hire between two and 50 employees. It also applies to part-time employees whohave worked at least 20 hours a week for four months. The other no-frills proposals being considered are limited to businesses employing one to 25 full-time employees.
The commission's proposal includes coverage of several mandated benefits, such as at least seven outpatient visits for diagnosis and treatment of acute mental health conditions.It will not cover employees' dependents and will require the business to pay 75 percent of the premium, with employees paying 25 percent.
The plan,to undergo study,is to take effect in 1996.
"It isnot too soon to voice a loud, firm and absolute objection to saddling Maryland's small businesses with the responsibility of paying the tab for the state's 570,000 people who have no health insurance," he said.
Matthews said he is not opposed to allowing small businesses to offer limited benefit insurance plans to their employees, if an owner chooses to do so.
PROPOSAL NEEDS MONEY
ANNAPOLIS -- Peter B. McDowell, Carroll's director of secondary schools, told a Senate committee that it was "imperative" that state dollars accompany a proposalto raise the compulsory school attendance age to 18 years or older for the 1993-1994 school year.
Testifying before the Senate Economic and Environmental Affairs Committee, McDowell, a former WestminsterHigh School principal, said that the proposal would introduce 200 additional students to Carroll schools and cost the system between $210,000 and $350,000 more a year.
"It's a great idea," McDowell said."But if we're going to bring 200 more students in Carroll schools --students who are unsuccessful or they wouldn't have dropped out in the first place -- we need to do some things differently and provide some alternative programs."
