BIDDEFORD — As President Barack Obama prepares to celebrate passing health care reform at a rally Thursday in Portland, Sen. Olympia Snowe is spreading a different message this week in her home state.
“It’s disappointing the way in which it unfolded,” Snowe said Tuesday of the recent votes to approve health care legislation. “Process does make a difference.”
Snowe spoke with members of the Journal Tribune’s editorial board Tuesday while back in Maine this week.
The senator said she was surprised the bill was passed and voted on so quickly by the U.S. House of Representatives and Senate after she was personally assured by Senate Majority Leader Harry Reid that the senators would have an open amendment process on the floor.
The House passed the landmark legislation late in the evening on Sunday, March 21 and sent the bill on to the Senate. The bill was passed by the Senate last Thursday and sent back to the House for final approval ”“ which happened later that night.
Snowe voted against the bill, citing the rushed process and her concern for small businesses facing steep penalties.
“The whole fact is when you’re considering a bill of this enormity, it is important to be practical,” Snowe said of the 2,700-page bill.
One major issue for Snowe is the high penalties to be levied against small businesses with more than 50 employees that do not offer insurance to their employees. In the bill, the penalty would be $2,000 per employee. Increasing taxes during the current economic climate is also problematic, she said.
With a 0.9 percent increase in payroll tax and a 3.8 percent increased tax on investment income and capital gains, small businesses may also suffer at a time when many are struggling to survive, Snowe said.
“I’ve talked to businesses already and they’ve said they’ll be watching that very carefully,” Snowe said of business owners’ response to the penalties.
Despite the health care bill’s shortcomings and her disappointment in the process, Snowe said the health care system is in need of reform, and there are several positive changes that will be made in the new legislation. The first is tax credits for small businesses that do offer health insurance to their employees. Another positive change for consumers is that insurers will not be allowed to decline coverage based on pre-existing conditions.
The bill will also encourage competition when the marketplace insurance exchange is introduced and when people will be able to cross state lines to purchase plans, but those changes unfortunately will not come until 2014, she said.
Snowe said she hopes the bill will improve coverage and hopes premium costs will go down ”“ especially for Mainers, who have seen huge increases in recent years.
“We’ve experienced devastating increases in Maine,” Snowe said. “Our costs are horrendous.”
And while subsidies and tax credits might work, there is much that remains unknown. The finances behind the bill are also of concern, Snowe said, because down the road the legislation may end up costing more than expected.
— Staff Writer Robyn Burnham can be contacted at 282-1535, Ext. 329 or rburnham@journaltribune.com.
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