Washington – At a Senate Small Business Committee hearing, Senator Evan Bayh today pressed Obama administration officials on the real-world impact of proposed health care reform legislation on Indiana small businesses, which employ 97 percent of all Hoosiers.

“Health care costs for small businesses in Indiana next year are expected to rise by 20 percent. This is unsustainable,” Bayh said. “This is money that could go to create new jobs and hire new people. It’s money that could go to expand existing businesses and create more tax revenue for Indiana. Instead it’s being sucked up by an unsustainable health care system. “

Small Business Administrator Karen Mills testified that proposed health care reform will lower administrative costs for small businesses.Gene Sperling, a counselor to Treasury Secretary Timothy Geithner, said that high administrative costs for small businesses could be reduced by 10 percent or more by proposed reforms now under consideration by the Senate.

The administration officials also testified that proposed health insurance exchanges would spread insurance risks out over a wider group of workers.  Lowering administrative costs and spreading insurance risk, they said, will help constrain rising premiums for workers who receive coverage through a small business employer.

 “I don’t care what the liberal or conservative position is on this, and I am not interested in the Democratic or Republican partisan position,” Bayh said. “I am interested in what practical steps we can take to help small businesses and the workers they employ meet the skyrocketing costs of health care.”

Bayh also questioned Mills and Sperling about how much help tax credits will provide to Indiana small businesses and their workers.

To view Bayh’s questioning, click here.

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