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WASHINGTON — The U.S. Chamber of Commerce is convening business groups on Friday to plot strategy as alarm grows over the direction of Democratic health care overhaul proposals.
The groups are deeply displeased with legislation from Sen. Edward M. Kennedy's health committee that began circulating last week. Possible provisions include a new government insurance plan that would compete with private insurers, and requirements for employers to provide health care to their employees or pay a fine.
A chamber vice president, Randy Johnson, told The Associated Press that business groups have been largely restrained to date about voicing opposition, but it might be time for that to change. The purpose of the meeting is to determine a strategy, possibly including an advertising campaign, he said.
Business opposition was instrumental in sinking health overhaul efforts during the Clinton administration so the development could be significant.
Johnson spoke after testifying at a hearing of Kennedy's committee Thursday where he expressed strong opposition to the "play or pay" concept that would force employers to cover their employees or be penalized. It's one possible component of sweeping health care legislation taking shape in Congress that President Barack Obama hopes to sign in the fall.
"This is, let's be clear, a sweeping new burden on employers of unprecedented proportion," Johnson told Kennedy's Health, Education, Labor and Pensions Committee. The National Federation of Independent Businesses also testified against such a new requirement.
Even though Democrats are looking at exempting small businesses, large businesses fear that their coverage packages could be deemed inadequate and they'd have to purchase additional coverage.
Another concern is the proposed new government-run insurance plan, which insurers fear would drive them out of business.
The chamber represents many thousands of businesses and business groups and could prove a formidable opponent to Democratic hopes for a health care overhaul, if it decides to go on the attack against Democratic plans. Johnson indicated that if the groups aren't yet ready to pull the trigger, they're getting close.
"I would say it's time to unload the powder and fill the musket," Johnson said.
Business groups are pushing for a more favorable bill from the more moderate Senate Finance Committee, which has jurisdiction over taxes and is expected to release a health overhaul bill next week.
