Apart from the benefits to North Carolina citizens, the House plan also cuts business taxes by more than $300 million over the next five years. It will cut the franchise tax by over 10% and reduce the corporate income tax from 6.9% to 6.75%. And it moves the state to a single-sales apportionment system for businesses.

      Lastly, this new plan broadens the tax base while keeping rates steady. It makes the sales tax fairer by applying it more evenly across North Carolina consumers. And it keeps the exemptions in the state sales tax for food and medicine to ensure they are affordable for all citizens. It is very important to note that this new plan only extends the tax to services that already collect the remit part of the sales tax, like warranties and service contracts. 

Health Insurance Coverage Examined by the NC House

      There have been several bills recently passed through the House that effect health insurance for North Carolina citizens. The House voted this week to require insurance coverage for the treatment of autism. The measure addresses the needs of many North Carolina families whose complex treatment for their autistic children has become increasingly out of reach. With input from all stakeholders; insurance companies, advocacy groups, doctors, and behavioral experts, lawmakers crafted a plan that carefully balances the treatment needs of patients, within a manageable cost framework for insurance carriers. The measure (HB498) sets age and cost caps while expanding coverage to include the most effective therapy protocols.

      House lawmakers also passed a measure that denies health insurance coverage for abortions in any health plans provided by the state, county, or city governments. In addition, HB730 forbids coverage for abortions under any future insurance plans offered through an online state exchange that may come as part of the federal Affordable Care Act. Sponsored by Reps. Jacqueline Schaffer (R-Mecklenburg), Debra Conrad (R-Forsyth), and Susan Martin (R-Wilson), HB730 also gives legal protection to healthcare providers who recuse themselves from providing treatment that conflict with their personal conscience as it relates to abortion. The measure now goes to the Senate.

      Just last week Governor McCrory signed House Bill 247, Freedom to Negotiate Health Care Rates (see photo above). I was proud to be the lead primary sponsor on this bill that will end the use of the "Most Favored Nations" (MFN) clause and ultimately help return a competitive health insurance market to North Carolina. The MFN clause currently allows an insurance company with a dominate market share to prohibit other insurance companies from receiving equal or lower rates as that dominate insurance company. This bill which is now law will prohibit insurance companies, mainly Blue Cross and Blue Shield, from placing the MFN clause in their contracts with doctors and hospitals. This allows North Carolina doctors and hospitals to offer the same or lower rates to other insurance companies as those currently offered to Blue Cross Blue Shield. The number of insurance companies offering coverage to businesses in North Carolina has dropped by more than 76 percent in the past 15 years (from 30 companies in 1998 to 7 now). I hope to see this number grow again now that these companies will have an opportunity to compete once again in the North Carolina health insurance market.