August 13, 2008 Businesses fight new health care rules Play video

(NECN) - Mitt Romney and Ted Kennedy joined forces to launch a new system of paying for health care in Massachusetts. Now the system is two years old. It remains a national model of health care reform, but here at home, is support for the plan falling apart because of high costs?

The latest problem: Business groups are fighting a rules change that will require employers to pay more. Under the old rules, they faced a so-called "Fair Share" penalty of $295 per employee every year. They could avoid the penalty by covering 25% of workers, or by offering employees health insurance with a 33 percent subsidy.

Now Governor Patrick wants to apply the penalty to all employers unless they meet both exemption, not just one. Why? Because costs are up and revenues are falling short.

The Patrick administration predicted employer "fair share" penalties would yield 46 million dollars in 2006 and 36 million dollars in 2007. Instead, penalties amounted to only 7 million dollars in both years combined.

Joining Chet to discuss, Jon Hurst of the Retailers Association of Massachusetts, and Brian Rosman, research director for Health Care For All.