Gov. Sonny Perdue is encountering road bumps as he tries to build enthusiasm for a plan to use government funds to encourage small businesses to provide health-care benefits.
Most of Georgia's small businesses do not offer health coverage to their employees, but Mike Sullivan, owner of Conyers-based Southeast Sealing Inc., does. He says it is breaking his budget.
"There are a lot of guys and women in this state who have small companies and who are being absolutely ripped apart by high health-care costs," Sullivan says. He welcomes Perdue's proposal to create a voluntary, state-run, health-insurance program for small businesses.
"It will cost someone a lot of money," Sullivan says. "I just hope that someone is not me."
The money is proving to be the sticking point. Perdue wants to subsidize the $182 million program with federal Medicaid grants and $20 million of state funds. That amount of money could cover roughly 30,000 low-income workers out of a pool of about 380,000.
The idea of using government funds to pay for the plan is drawing criticism where Perdue needs support the most: under the Gold Dome.
"Entitlement plans are not the way to solve the problem," says House Rules Chairman Earl Ehrhart (R-Powder Springs). "If we really want to add something to this, let's have benefits for all taxpayers and let's do it through a tax credit, not through involuntary tax contributions."
Ehrhart says he doubts the General Assembly would approve Perdue's proposal without major changes.
Most of Georgia's small businesses do not offer health coverage to their employees, but Mike Sullivan, owner of Conyers-based Southeast Sealing Inc., does. He says it is breaking his budget.
"There are a lot of guys and women in this state who have small companies and who are being absolutely ripped apart by high health-care costs," Sullivan says. He welcomes Perdue's proposal to create a voluntary, state-run, health-insurance program for small businesses.
"It will cost someone a lot of money," Sullivan says. "I just hope that someone is not me."
The money is proving to be the sticking point. Perdue wants to subsidize the $182 million program with federal Medicaid grants and $20 million of state funds. That amount of money could cover roughly 30,000 low-income workers out of a pool of about 380,000.
The idea of using government funds to pay for the plan is drawing criticism where Perdue needs support the most: under the Gold Dome.
"Entitlement plans are not the way to solve the problem," says House Rules Chairman Earl Ehrhart (R-Powder Springs). "If we really want to add something to this, let's have benefits for all taxpayers and let's do it through a tax credit, not through involuntary tax contributions."
Ehrhart says he doubts the General Assembly would approve Perdue's proposal without major changes.
