Senator Toomey sponsors bill to eliminate part of healthcare law that harms job creation
U.S. Senator Pat Toomey | 03.01.13
U.S. Senator Pat Toomey
WASHINGTON, D.C. – U.S. Senator Pat Toomey (R-Pa.) cosponsored legislation to repeal the employer mandate in the president’s $2.6 trillion health law. Sen. Toomey joins lead sponsors Sens. Orrin Hatch (R-Utah) and Lamar Alexander (R-Tenn.) in introducing the American Job Protection Act in the Senate. A bipartisan companion bill has been introduced in the House.
The American Job Protection Act strikes the provisions in the President’s health law that requires businesses with 50 or more full-time employees to provide health insurance of a certain value or else pay a penalty of $2,000 for each full-time employee.
The nonpartisan Congressional Budget Office determined that this new tax increase would cost employers $150 billion over eleven years. The president’s health care law is estimated to result in a loss of 3.2 million full-time jobs, according to the nonpartisan Hudson Institute.
While the employer mandate does not go into effect until 2014, the requirement has already prompted many employers to refrain from hiring or limit hiring to part-time workers. According to a study by the U.S. Chamber of Commerce, 72 percent of small business owners said that the health care law would make it harder for them to hire.
“The president's health care law is fundamentally the wrong way to improve our nation's health care system,” said Senator Toomey. “It imposes onerous new mandates and regulations. The unintended consequences, I and others warned about, are now happening. Already hamstrung by the weak economy, businesses are reluctant to hire more workers. I am troubled that the president’s health care law is costing Pennsylvania jobs by creating even harsher conditions for businesses struggling to keep their employees. It’s time to recognize this unpopular law is bad for Pennsylvania’s jobs and bad for the people who depend on them.”
Pennsylvania businesses thanked Sen. Toomey for introducing the American Job Protection Act.
Pennsylvania businesses thanked Sen. Toomey for introducing the American Job Protection Act:
“I applaud Sen. Toomey for supporting this bill. I hope that all of our legislators will see that the president’s health care law is not achieving the objectives it was proposed to achieve. Because of the employer mandate, we have been forced to reduce the hours of all of our staff that were working 30-40 hours per week to 29.5 hours or less per week. Furthermore, we are now only hiring part time employees. It is necessary that we repeal the employer mandate and find an alternate solution that will solve our health care issues without hurting employers, employees and consumers,” said Lori Michael, owner of Lori’s Angels, a home care business in Schuylkill County.
“The employer mandate hangs over Easton Coach Company like a big black cloud. The higher costs resulting from this mandate put into question our ability to meet existing contracts and certainly means less money to hire, expand, and invest. In a fragile economy, heaping costs and compliance requirements onto businesses just doesn’t make sense. I am grateful that the Senator is amplifying the voice of average business owners so that their views on this monumental matter are heard,” said Joe Scott, President of Easton Coach Company.
- Explore more stories about healthcare policy in PA
- Learn more about the Affordable Care Act and healthcare reform
- Starting in 2014 under the law, companies with 50 or more full-time employees must provide health insurance, or they'll be subject to a penalty of two-thousand dollars a worker, minus the first 30 employees. witf's Megan Lello takes a look at how a couple of midstate businesses are coping with the changes. LISTEN