Nonprofits must be aware of healthcare reform debate

From the National Council of Nonprofits

Comprehensive healthcare reform is likely to move through Congress this summer helped by the bipartisan leadership of Senators Baucus (Mont.-D) and Grassley (Iowa-R) on the Senate Finance Committee. This effort was launched in November 2008 with Senator Baucus’ “Call to Action”, a white paper promoting a national health insurance exchange for the uninsured including both private plans and a public option, and envisioned to offer universal coverage and contain costs.

Of greatest importance to nonprofits during this complex debate are the goals of universal coverage, reasonable cost of coverage and access to healthcare choices. Until the finance committee sets its direction, everything remains on the table except a single-payer plan.

Roundtable discussions have covered a range of options, from a Small Business Health Options Program (the SHOP Act, S 979, HR 2360), which would cover nonprofits with staffs under 100 in a nationwide insurance pool, to eliminating the employer-sponsored health options in favor of individual deductions or credits.

A multitude of options have surfaced to pay the estimated cost of $1 trillion or more over ten years. This month the finance committee released a “Description of Policy Options” for financing, including modifying the tax exemption for nonprofit hospitals, increasing taxes on alcohol, taxing sugared drinks such as sodas, changing Medicaid and Medicare provider payments and reducing the limit on itemized deductions, among many others.