House Committee on Small Business, Republicans

Straight Talk: SHOP Incompetence Continues

Weekly Update from Sam
Dear Friends,  

The Obama Administration is once again limiting and delaying choices under the Small Business Health Options Program (SHOP), and still isn’t releasing basic data about participation in the program. In the latest decision, the Centers for Medicare and Medicaid Services (CMS) announced a delay of the ‘employee choice’ option until at least 2016.

Each delay and reduction in choices has the potential to lead to increased premium costs, and every time the administration can’t meet a deadline it increases the confusion for small businesses. Under Obamacare, costs are increasing for nearly two-thirds of small businesses that provide health insurance to their employees, according to a CMS report released in February. Small businesses do not expand and hire when facing a lack of certainty, and the administration’s disarray in managing this program is just one more element of uncertainty for small firms in a weak economy.

The Department of Health and Human Services and CMS have yet to answer my request for basic data about the program’s development, but the Committee will continue to work for transparency from these federal agencies on behalf of small businesses.

Sincerely,                                            

(signed)
Sam Graves
Chairman

Latest Committee Action

On Wednesday, the Committee examined the challenges and benefits of the Federal Aviation Administration’s (FAA) 2020 NextGen mandate for general aviation small businesses. The FAA has required that by 2020 all aircraft operating in certain airspace be equipped with advanced technology systems. FAA Administrator Michael Huerta and private sector representatives of the industry testified about the safety and reliability that technological improvements can bring to aviation, as well as the costs and challenges many small businesses face, and the importance of incentivizing widespread adoption. 

News from Washington

Last week, Chairman Graves and other Committee Members called for a withdrawal of the Environmental Protection Agency’s and the U.S. Army Corps of Engineers’ controversial and costly new proposed rule that would expand the reach of Clean Water Act regulations, and failing that, an extension of the comment period. On Tuesday, the agencies announced a three-month extension for more input from concerned small businesses, farmers and ranchers. “The decision to give more time for input, as we suggested, is a step in the right direction,” said Chairman Graves. “It would be wiser still to withdraw the rule, step back and thoroughly weigh the costs and economic consequences for small businesses.”

Also on Tuesday, the House passed the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act for Fiscal Year 2015 (H.R. 4745), which reduces spending by $1.8 billion, while funding infrastructure, supporting housing efforts and promoting aviation safety.

On Thursday, the House passed America's Small Business Tax Relief Act of 2014 (HR 4457), which Chairman Graves applauded because the bill encourages job-creating investment in new equipment. The bill would allow small businesses to plan with the certainty that Section 179 expensing levels would be set at $500,000. Small businesses, farmers and ranchers could budget without the concern that the policy is likely to change.

Also on Thursday, the House passed HR 4453, which enables S Corporations (which employ one in four workers in the private sector) to access more capital with fewer tax penalties, and to make the same charitable donations that other corporations already can. These bills join some 40 House-passed bills that would strengthen economic growth if passed by the Senate and signed into law by the President.

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June 13, 2014
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   Tweet of the Week
@SmallBizGOP Just one more difficulty facing employers "Some #Smallbiz Employees to Have Only One Health-Plan Choice" http://on.wsj.com/1hIjOE5  @WSJ
                            
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