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HHS Report Says Health Costs Will Increase Under Senate Bill
The Associated Press reports Democrats "got a sober warning Friday that costs will keep going up" under the Senate healthcare bill, "and proposed Medicare savings may harm the program." A Department of Health and Human Services (HHS) report "found that the nation's $2.5 trillion annual healthcare tab won't shrink under the Democratic blueprint that senators are debating. Instead, it would grow somewhat more rapidly than if Congress does nothing." The analysis also said the "Democrats' plan to squeeze Medicare for $493 billion over 10 years in savings relies on specific policy changes that 'may be unrealistic' and could lead to cuts in services." However, the bill "would provide coverage to 93 percent of U.S. residents, reducing the number of uninsured people by about 33 million."
The National Association of Manufacturers (NAM) opposes this bill, as it adds costs to the healthcare system and, by extension, the manufacturing community. Specifically, the NAM is disappointed that Senate Majority Leader Harry Reid (D-NV) chose to add an additional surtax similar to the one proposed in the House bill. Nearly 70 percent of all manufacturers are organized as “S” corporations or other flow-through entities and pay income taxes at the individual rate. The NAM also opposes an excise tax on health insurance plans that will add costs to manufacturers and employees, limitations on flexible spending accounts and a public option that will either force private competitors to lower costs by cutting coverage or drive them out of the marketplace completely. The NAM believes healthcare reform should enable employers to continue offering flexible, generous health benefits without increasing the cost of doing business.
Speak Out on the EPA’s Regulation of Greenhouse Gases
The Environment Protection Agency (EPA) recently announced its proposed "tailoring rule" and outlined its regulations for greenhouse gas (GHG) emissions from large industrial facilities. The rule opens the door for regulation of greenhouse gases from smaller manufacturing plants, energy facilities, hospitals, farms and even homes. Congress, not the EPA, is the appropriate authority to deal with such a complex regulatory initiative that needs and deserves transparency and rigorous debate. To learn more and to comment on the EPA's proposed "tailoring rule," click here.
Court Decisions Could Have Big Impact on Manufacturers
One of the biggest threats to manufacturers in American courts is the constant pressure from the trial bar to test the limits of established law. One trial judge or two appellate judges who accept a novel theory in one case can release a barrage of claims against manufacturers in many industries. The following cases may have a huge impact on manufacturers.
Duty to warn of hazards from third party products. The National Association of Manufacturers (NAM) joined four other organizations urging a New York court to reverse a lower court ruling that held a manufacturer liable for failing to disclose hazards that arose from products made, sold or installed by another manufacturer. The case was settled in November 2009 without a decision. The trial bar is continuing to press these kinds of claims in the asbestos context, but the threat exists for other products as well. Pokorney v. Foster Wheeler Energy Corp. (N.Y. Ct. App.).
Constitutionality of punitive damages cap. Last year, the NAM urged an Arkansas appellate court to declare the punitive damages cap in that state to be constitutional. The NAM argued the cap violates neither the Arkansas Constitution’s prohibition against statutory limits on compensatory damages nor the separation of powers clause. The Arkansas Supreme Court dismissed the appeal on procedural grounds because the lower court did not finalize its decision on all the claims and defendants. The case can be appealed again. Beverly Enterprises Inc. v. Keaton (Ark. Ct. App.).
Discuss Manufacturing Issues with Legislators at Business Speaks
Business Speaks at the State House, presented by Milliken & Company, is January 27 at the Marriott in Columbia. Held for the first time in conjunction with Industry Appreciation Week, Business Speaks is a gathering of more than 500 of South Carolina's leading business people, constitutional officers and members of the General Assembly. New this year, the South Carolina Chamber of Commerce will honor legislators who scored 100 percent in the South Carolina Chamber’s 2009 Legislative Scorecard. These leaders will be presented the inaugural Business Advocate Award. In addition, this is a special opportunity to hear updates regarding healthcare, infrastructure, economic development incentives, the environment, energy and other issues important to manufacturers. Get a preview of the 2010 Competitiveness Agenda, and speak directly to your House and Senate leaders. Register now.
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