The House has already passed legislation that sits in the laps of the Senate. The importance of passing the Healthy Michigan Law is not only attracting businesses to the State but it also lies in the effects on the individuals and small business.
The Healthy Michigan Law will help employers avoid $50 to $80 million in penalties they will be facing come January 1st, 2014 under the Affordable Care Act if they do not provide health insurance. Business could face fines up to $3,000 per employee otherwise. (As we were gong to press, President Obama approved the postponement of the business mandate until 2015.)
The plan relieves the cost of uncompensated care, which falls on the small business owners. It also expands health care coverage to workers in or near the poverty limit.
Governor Snyder has called for the Senate to set a date for a critical vote on this legislation. He said, “This plan will save taxpayers money and reduce costs for Michigan’s job providers. It will give consistent and cost-effective coverage to those who now rely on the emergency room as their primary source of medical care. Passing this bill is critical to the well-being of our citizens and the vitality of our economy.”
The State is projecting a $206 million savings alone in 2014 by providing the Healthy Michigan Law. $82 million a year in uncompensated cost is projected as being eliminated in uncompensated costs currently incurred by hospitals, being passed on to individuals and business through higher premiums.