Fair Share Health Care Act
Summary: The Fair Share Health Care Act requires companies with [10,000] or more employees to spend at least [ten] percent of payroll on health care or to pay the difference to a state Medicaid expansion fund.
SECTION 1. SHORT TITLE
This Act shall be called the “Fair Share Health Care Act.”
SECTION 2. FINDINGS AND PURPOSE
(A) FINDINGS—The legislature finds that:
1. Historically, large American companies have provided health insurance to their employees. But in recent years, some large companies have cut health insurance benefits to reduce costs.
2. Companies that don’t provide health insurance are, in effect, subsidized by companies that do. Nationwide, responsible companies that cover health benefits not only pay a total of $150 billion annually to insure their own employees, but also pay $31 billion to insure other companies’ workers through dependent coverage.
3. Companies that don’t provide health insurance are, in effect, subsidized by state taxpayers. Nationwide, states pay a total of $8 billion annually to provide public assistance health insurance to the employees of companies that pay poverty-level wages and their families.
4. Companies that don’t provide health insurance have an unfair competitive advantage over companies that do.
(B) PURPOSE—This law is enacted to protect the health of workers and their families, to end an unfair drain on state health resources, and to create a more competitive business environment by requiring large companies to pay their fair share of their employees’ health care costs.
SECTION 3. FAIR SHARE HEALTH CARE
After section XXX, the following new section XXX shall be inserted:
(A) DEFINITIONS—In this section:
1. “Employee” means all individuals employed full time or part time directly by an employer.
2. “Employer” has the same meaning as in [cite state employment law] except that “employer” does not include the federal or state governments, or any political subdivision of a state.
3. “Healthcare costs” means the amount paid by an employer to provide health care to employees in the state to the extent those costs may be deductible by the employer under federal tax law. “Healthcare costs” includes expenditures for medical care, prescription drugs, vision care, medical savings accounts, and any other costs to provide health benefits to employees.
4. “Secretary” means the Secretary of the Department of [Labor].
5. “Wages” has the same meaning as in [cite state employment law].
(B) FAIR SHARE HEALTH CARE FUND
1. The Fair Share Health Care Fund shall be established to help finance Medicaid coverage for uninsured workers.
2. The Fair Share Health Care Fund is a non-lapsing fund held separately from the general fund.
3. The Fair Share Health Care Fund shall consist of any revenue received from payments made by employers under this section and any other monies accepted for the benefit of the fund.
4. The [Treasurer] shall invest the Fair Share Health Care Fund in the same manner as other state monies, and any investment earnings shall be retained to the credit of the fund.
(C) HEALTH CARE REPORTING REQUIREMENTS
1. On or before July 1 of each year, every employer with more than [10,000] employees in the state shall report to the Secretary:
a. The average number of employees in the state during the previous calendar year and the number of employees as of December 31;
b. The amount spent by the employer on healthcare costs for employees in the state during the previous calendar year; and
c. The percentage of wages that was spent by the employer on healthcare costs for employees in the state during the previous calendar year.
2. The information required shall:
a. Be provided in a format approved by the Secretary;
b. Be signed by the chief executive officer or an individual who performs a similar function; and
c. Include an affidavit under penalty of perjury that the information was reviewed by the signing officer and that the information is complete, does not contain any untrue statement of a material fact, and does not omit any material fact.
3. When calculating the percentage of wages spent on healthcare costs for employees in the state, an employer may exempt:
a. Wages paid to any employee in excess of $50,000, or in excess of the median household income in the state as published by the U.S. Census Bureau, whichever is greater; and
b. Wages paid to an employee who is enrolled in or eligible for Medicare.
(D) PAYMENT TO THE FAIR SHARE HEALTH CARE FUND
1. An employer with more than [10,000] employees in the state that is not organized as a nonprofit organization and does not spend at least [ten percent—NOTE: use a percentage that approximates the average for large for-profit employers] of total wages paid to employees in the state for health care costs shall pay to the Fair Share Health Care Fund an amount equal to the difference between what the employer spends for health care costs and [ten percent] of total wages paid to employees in the state.
2. An employer with more than [10,000] employees in the state that is organized as a nonprofit organization and does not spend at least [eight percent—NOTE: use a percentage that approximates the average for large nonprofit employers] of total wages paid to employees in the state for healthcare costs shall pay to the Fair Share Health Care Fund an amount equal to the difference between what the employer spends for healthcare costs and [eight percent] of total wages paid to employees in the state.
3. An employer may not deduct any payment made under this section from the wages of an employee.
4. An employer shall make the payment required under this section to the Fair Share Health Care Fund on a periodic basis as determined by the Secretary.
(E) ENFORCEMENT
1. The Secretary shall promulgate such regulations as are necessary to implement and administer compliance.
2. Failure to file a report in accordance with this section shall result in a civil penalty of $1,000 for each day that the report is not timely filed.
3. Failure to make a payment required under this section shall result in a civil penalty of $500,000.
4. A person who knowingly violates or attempts to violate this section, or a person who knowingly advises another person to violate this section, shall be guilty of a misdemeanor punishable by up to one year in prison and a fine of up to $10,000.
SECTION 4. EFFECTIVE DATE
This Act shall take effect on July 1, 2007.
Health Care Disclosure Act
Summary: The Health Care Disclosure Act requires the collection and publication of data identifying employers with at least 25 employees who sought government-funded healthcare benefits or uncompensated health care.
SECTION 1. SHORT TITLE
This Act shall be called the “Health Care Disclosure Act.”
SECTION 2. HEALTH CARE DISCLOSURE
After section XXX, the following new section XXX shall be inserted:
(A) INFORMATION TO BE PROVIDED—Any person who applies for government-funded healthcare benefits, including but not limited to Medicaid and SCHIP, and any person who requests uncompensated care in a hospital or other healthcare facility, shall identify the employer or employers of the proposed beneficiary of the healthcare benefits. In the event the proposed public health program beneficiary is not employed, the applicant shall identify the employer or employers of any adult who is responsible for providing all or some of the proposed beneficiary’s support.
(B) DISCLOSURE TO THE PUBLIC—On or before February 15 of each year, the [Department of Health] shall make public a report that identifies all employers with at least 25 employees who sought government-funded healthcare benefits or uncompensated care during the previous year. In determining whether an employer has 25 employees who sought government-funded healthcare benefits or uncompensated care, the [Department of Health] shall include all subsidiaries at all locations within the state. The report shall include each employer’s name, subsidiaries and locations, and for each: the total number of employees and dependents identified, a breakdown between government-funded health benefits and uncompensated care; and the approximate costs to the state. The report shall not include the names of any individuals who seek government-funded health benefits or uncompensated care.
(C) ENFORCEMENT—The Secretary [of Health] shall promulgate such regulations as are necessary to implement and administer compliance.
SECTION 3. EFFECTIVE DATE
This Act shall take effect on July 1, 2007.