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December 6, 2006
  • State Health Care Plans Hope to Set Examples for Federal Programs
  • More Than Half of the Uninsured Are Ineligible For Public Assistance
  • Business Experts Argue Sarbanes-Oxley Reform Would Boost U.S. Market
Congress is in lame duck session as the folks on Capitol Hill work to wrap up items on their agenda before heading home for the holidays. While they have been busy debating legislation during this time, there has been no movement on micro-business legislation that the NASE covers. Therefore, this week’s edition of Washington Watch will focus on some recently published studies about issues concerning small and micro-businesses, including access to health care and calls for changes to Sarbanes-Oxley Section 404.


State Health Care Plans Hope to Set Examples for Federal Programs

The federal government has a lot to learn from state health care programs, according to panelists at a recent forum sponsored by the Commonwealth Fund and Alliance for Health Reform, two organizations that focus on health care policy. Participants focused on Massachusetts, Utah and Vermont, which all have programs in place to combat the number of uninsured Americans.

“States are often a place where programs get a trial run. If they grow and become stronger, then the federal government starts to consider them viable,” said Kristie Darien, executive director of the NASE’s legislative office. “The most successful programs are then considered for national implementation.”

Recent legislation in Massachusetts will require the state’s 550,000 uninsured residents to obtain coverage by the middle of next year, while subsidizing premiums in comparison to income for those who are earning 300 percent below the federal poverty line. In Vermont, those who have been without insurance for 12 months or more will be eligible for and contribute to the cost of a comprehensive health care plan. Utah has created a Primary Care Network (PCN) using a Medicaid waiver and by spreading out costs among those already eligible for Medicaid.

For more information on the report, visit http://www.allhealth.org/briefing_detail.asp?bi=90.

More Than Half of the Uninsured Are Ineligible For Public Assistance

A recent report says fifty-six percent of Americans are ineligible for state and federal health care programs and are unable to purchase health coverage on their own. The data was released by the Urban Institute, an economic and social policy research organization.

Affordability is a large problem and arguments that say all but a small minority of the uninsured can either purchase coverage or are already eligible for assistance are simply untrue, the study authors say. They used an income level of 300 percent of the federal poverty level to measure “affordability.” In 2004, that number referred to a single person who made just under $29,000 and a family of four who made just under $58,000.

The study showed that adults without children comprised the largest group of those uninsured and ineligible for public assistance, at 69 percent. This sector of the population is not usually offered assistance from Medicaid, the State Children’s Health Insurance Program (SCHIP) and other programs. Affordability for uninsured parents is slightly lower at nearly 57 percent. Children fared the best of these groups, with only 11.3 percent unable to afford and ineligible for public assistance.

The report proposes extensive outreach efforts and simplified enrollment and redetermination procedures, including easing requirements for documentation of income, assets and citizenship among others.

Business Experts Argue Sarbanes-Oxley Reform Would Boost U.S. Market

The nation’s economy is suffering due to burdensome regulations that make it harder for businesses to survive, says a study by the Committee on Capital Markets Regulation, a group of experts from the investor community, business, finance, law, accounting and academia. One of their main concerns is the Sarbanes-Oxley Act of 2002, particularly Section 404, which was intended to make business accounting practices more transparent.

Researchers say the requirements for complying with Section 404 of the Sarbanes-Oxley Act are beyond what many smaller firms can afford and that this is especially true for new businesses. They also argue that improper criminalization of entire companies has sometimes forced them to close.

“Reports like this one show that there are greater economic reasons to help small and micro-businesses function more effectively,” said Kristie Darien, executive director of the NASE legislative office. “The NASE supports efforts to balance the playing field for start-ups, which helps create new jobs and enhances the economy.”

The report recommends a more reasonable standard for internal controls and financial statements, saying that this may mean that small companies would be exempt from auditor attestation and be subject to a more reasonable standard for management certification.
 



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