The Maryland General Assembly is expected to attempt to override Governor Ehrlich’s veto of the Fair Share Health Care Fund Act later this week. We expect it to be a very close vote, so if you haven’t already contacted your legislators, please do so now.

This bill is bad public policy on many levels:

1. The legislation does nothing to address the problem of Maryland’s uninsured. As Governor Ehrlich said on WBAL radio this morning, “This is a political statement dressed up as a bill.” With over 150,000 businesses in Maryland, the General Assembly has passed a discriminatory bill that would tax one large company based on its level of health care spending. Since most of the uninsured work for small businesses, wouldn’t it make more sense to help small businesses offer health insurance, rather than penalizing one company that already provides health insurance benefits.

2. The legislation violates the federal Employee Retirement Income Security Act (ERISA), according to Henry A. Smith, III, a partner with Smith & Downey and highly regarded expert in employment and labor law. In fact, the Supreme Court has struck down similar laws.

3. Passage of this legislation presents a significant threat to all Maryland businesses. Proponents will seek to expand the payroll tax to more businesses in future years. For years, proponents have sought to create a state-mandated universal health care system funded by business taxes, and this legislation allows them to get their foot in the door.

4. This legislation will cost Maryland jobs. Maryland is not an island. Imposing a health care mandate on Maryland employers that no other state has enacted will place our businesses at a competitive disadvantage.

5. Legislators should focus on real reforms that would make health care insurance more affordable for small businesses. Such reforms include increasing competition, enacting long-term medical liability reform, and reviewing the government mandates and other factors that contribute to health care costs.