FTCR Blasts Romney’s Line Item Veto Of Portion of Socialized Health Care Bill

The Foundation for Taxpayer and Consumer Rights (FTCR) issued a press release yesterday that claims that Romney’s use of the line item veto to kill a portion of the socialized health care bill “will likely mean that many workers with good health insurance through their employers will be forced into inadequate ‘bare bones’ policies.” How they reached this nonsensical conclusion is as absurd as anything I’ve ever seen.

Governor Mitt Romney used a line-item veto to remove the part of the law that would have required employers to pay a $295 per year per employee fine if they refused to provide coverage or dropped existing policies. Under the law, comprehensive policies offered by employers can be replaced by high deductible plans that require patients to pay more for fewer services. The lack of any employer charge when they drop comprehensive coverage makes this outcome even more likely.

What FTCR does not explain is how a $295 per year per employee “fine” would hurt small businesses, and how private businesses have a vested interest in offering good health coverage as an incentive for their existing employees and prospective employees. When looking for a job, it seems we tend less to judge a book by its cover and more on what kind of benefits they offer.

FTCR incorrectly assumes that at lack of a $295 per year per employee “fine” is an incentive for private businesses to get stingy with what kind of health coverage they offer. If that were the case, since no such “fine” exists today, these businesses would already be shortchanging their employees in that regard.

I don’t like the socialized health care bill, or the fact Romney signed any of it into law, but I am glad Romney did veto that ridiculous tax/fine.

Matt Margolis is co-author (with Mark Noonan) of Caucus of Corruption: The Truth About The New Democratic Majority. He also blogs at The Buffalo Bean. Follow Matt on Twitter.