PDF Why does business oppose health care reform?
The US Chamber of Commerce announced recently:
Should the legislation passed by the House today become law, the Chamber will work through all available avenues—regulatory, legislative, legal, and political—to fix its flaws and minimize its potentially harmful impacts.
What's wrong with this picture?
I might agree with those words, but it would be a case where agreement is based on a misunderstanding. My position, I hope, is fairly clear in these pages.
I might even agree with some of the Chamber’s specific criticisms of the recently passed health bill. But I do not understand why the chamber thinks it is in the interest of business to defend the current employment based system.
Let’s look at a few basic facts.
Health care as a percentage of compensation has increased from 1.4% in the 1960’s to 6.6% in the last decade.
During the last ten years alone, the percentage of employers offering health insurance has dropped from 69% to 60%.
The percentage of large employers offering retiree health insurance has declined from almost 70% twenty years ago, to less than 30% today.
Only 55% of the private sector workforce is covered by health insurance offered by their employer.
The percentage of the growing population covered by employer sponsored health insurance has shrunk by almost 5% in the eight years before the recession.
What is the business case here?
Costs are rising out of proportion to other costs of doing business!
Market share is shrinking!
And it is not for lack of trying.
Business has clearly been the leading edge in developing cost containment strategies. The problem is that they are at the wrong end of this economic food chain.
Collectively, the percentage of the market driven by employer sponsored health insurance is declining. But businesses do not generally act collectively. And not even Wal-Mart, were it in this business, has enough market power to move the health care market.
And when Medicare and Medicaid squeeze the cost balloon, it bulges in the business budget for health care benefits.
Smell the Roses
When will business wake up and join with government to get this system under control?
When will they recognize that they are sitting on the bottom story of a two story (or three story) outhouse?
The advantages to the business community of decoupling health care from employment should be apparent.
Health care cost containment
Less contentious collective bargaining and employee relations
Level competitive playing field
A healthier workforce
More agile employment practices
A more robust small business community.
What’s wrong with this picture?
Why doesn’t this make sense to the business community? It can’t be just an interest in defending other like minded profit seekers. Tthere is certainly ample precedent for internecine conflict.
Could it be fear of BIG GOVERNEMENT? Does ideology trumps common sense?
1 Response to “Health Care, Business and Logic, or Not”