Text: MARYLAND CITIZENS' HEALTH INITIATIVE
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2002 Plan Archive

QUICK RESULTS

According to a significant study by the Lewin Group, quality, affordable health care for all is within reach.

Our Plan will not cause businesses to shut down, will not cause businesses to leave the state, and will even save some businesses money!

Many have wondered how our Health Care for All Plan would effect business in the state.  Others wanted a firm to independently verify the costs of the Plan initially estimated by our experts at Johns Hopkins, University of Maryland and Georgetown.

We commissioned the Lewin Group to examine the plan’s impact on business AND to verify the cost estimates.  The Lewin Group is a renown expert economic forecasting company used by groups like ours and others including the US Chamber of Commerce.

Overall Cost

Our plan will not negatively effect the current state budget. According to the Lewin Group, the net state public sector cost for this plan is $665.7 M fully funded in the plan with new revenue. In addition, the plan charges fair premiums to those newly insured, maximizes federal matching funds, utilizes existing program funding for the uninsured to keep payroll contributions lower over time, and capitalizes on savings from our prescription drug buying pool to help fund the plan.

Impact on Jobs…

According to the Lewin Group, there would be little net change in employment in Maryland under the program. Up to 10,000 minimum wage jobs could be lost in affected firms, which would be roughly offset by increased employment due to the influx of federal revenues under the program. In addition, Lewin suggests that the plan might actually attract to the state some large employers in manufacturing and other higher wage industries due to reduced uncompensated care cost.

Will small businesses leave the state?

No. The Lewin Group thinks it is very unlikely that the program would push employers to relocate in neighboring states. This is because about 65 percent of uninsured workers are employed in either the services or the retail trade industries such as restaurants, dry cleaners, gasoline stations, and stores. These businesses must locate near their markets or risk losing sales volume. Even if some businesses do relocate, the Lewin Group thinks that employment in Maryland is unlikely to change. These firms will likely employ the same Maryland workers in their new location.

What’s the impact on business?

Firms that spend at least 4.5% of their payroll on health care (or 8% payroll if the business employs 10,000+ workers), will see savings of about $132 per employee. Firms that spend less than the required percent of payroll (e.g., a retailer that only provides health care to management but not clerks), or nothing on healthcare will spend between $780 and $984 per employee on health care generally due to increased enrollment in their health care plans.

Regardless of what is spent by Maryland business, Lewin estimates that about 92% of the costs for businesses will be passed on to employees in the form of lower wages. The cost to families noted below includes such wage effects.


What’s the impact on Maryland families?

Under our plan, every Marylander will now have access to quality and affordable health care. Every Marylander will have the coverage they need if they are laid off or between jobs. The Lewin Group estimates that the average family will spend $391 more per year under our plan. So…for just $1.07 extra per day, the average Maryland family will be able to purchase the health care security they deserve. Note that many families will save money or pay nothing more than they are now. The $391 increase includes the costs for changes in premiums, out-of-pocket expenses, and taxes dedicated to fund the program. It also takes into account that employers will pass along most of their costs to employees in the form of lower wages.

Final Plan One Page Summary
(MS Word) *
(pdf) *
Health Care for All! Technical Proposal
MdCare Benefit Package
(MS Word)
(pdf)

MdCare/MCHP Premium Schedule
(MS Word)
(pdf)

* Revised 1/07

2002

Plan

Lewin Study Media Release
One Page Summary
(pdf)
Executive Summary
(pdf)
Full Study
(this is a very large download – 87 pages)
Impact

Study