WASHINGTON — With the Capitol dome as a backdrop, retail executives at the International Mass Retail Association conference said small businesses need more of a voice in the health care debate, which they say is becoming more and more confusing.
None of the executives interviewed last week during the convention support the Clinton administration’s health insurance plan, believing it is too expensive and would bankrupt or at least damage their businesses.
Still, most of the retailers felt it was too early to back any of the other proposals. They’re waiting to see what’s left after congressional panels narrow options now on the table.
IMRA is also taking a wait-and-see position. While its rival trade association, the National Retail Federation, endorsed a plan sponsored by Reps. J. Roy Rowland (D., Ga.) and Michael Bilirakis (R., Fla.) last month, IMRA is waiting to see cost estimates for each of the contending bills.
Here is what some of the executives had to say about health care reform.
Gene Wright, vice president and general merchandise manager, Warehouse Clubs, Skokie, Ill.: “I think the overall idea and intent [of reform] is terrific. But you have to be careful to make sure small business can afford it. Wal-Mart can afford anything, but small businesses like mine can’t. In general I’m not real happy with Congress’s position. Small business [executives] are more likely to be trying to run their business than to be up here crying a river.
“I haven’t established the impact of the plan [on Warehouse Clubs]. It wouldn’t make sense to spend a lot of time on it now because things are changing so much.”
Dave Daniels, president and chief operating officer, Penn-Daniels Inc., Quincy, Ill.: “All these plans are unrealistic because who’s going to pay for it? I haven’t seen any yet I like; [the debate is] still too far to the left. I don’t think the American public truly wants socialized medicine and employer mandates. We need to look someplace in between. Policymakers need to look at different places around the country that are doing different things with health care, like the Dayton-Hudson insurance alliance in Minnesota. I don’t know if government will ever face the fact that the number-one problem is that they’ve underfunded Medicare and Medicaid.
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“I’m encouraged now there won’t be employer mandates, based on the committee votes in Congress against them.”
George Jones, president and chief executive officer, Rose’s Stores, Henderson, N.C.: “We’re concerned about the rise in health care costs, so I absolutely think something has to be done. As far as employer mandates go, I think we’d be willing to contribute something. The question is how much.
“I do not support the President’s health care plan. It’s extremely expensive, and I don’t see how we can afford it. It would be a tremendous burden.”
Tom Hendra, senior vice president, hardlines and home, Shopko Stores, Green Bay, Wis.: “I think at this point, the retail industry is totally confused about health care. It’s in total disarray. Shopko has a mail-order pharmaceutical company, ProVantage, so we recognize the need to lower health care costs for the consumer. But I think employer satisfaction is the issue — what employers can afford. [On the other hand], I believe the call for no employer mandates is unrealistic.
“Maybe we should take the route of Dayton-Hudson’s health care plan that uses regional alliances of businesses.”
Steve Drexler, vice president, Pamida Discount Centers, Omaha, Neb.: “The Clinton plan would double our health care costs, which are $3 million annually. We have about 6,500 employees.
“I think it’s reasonable for employees to expect some participation from the employer, based on the number of hours they work. But the Clinton plan could put people out of business. Health care costs have escalated, but everyone has managed to suck it in. We’re continually looking at cutting expenses in all facets of the business, including health care.”
Denis Lemire, president and chief operating officer, Stuarts Department Stores, Franklin, Mass.: “The scariest thing about health care is, no matter what gets passed, we don’t know the real cost. There should be some reform, but the biggest problem is how to test it and see if it works. Maybe health care reforms should be tested statewide or regionally.
Julian Seeherman, chairman and ceo, Venture Stores, O’Fallon, Mo.: “There are so many plans sifting through, and they’re just not coming to any conclusions. I don’t see room for any employer mandate. We believe people are starting to believe the Clinton plan would bankrupt a lot of businesses. It’s just impossible.”