Attitudes of Business Leaders Regarding Health Care Coverage
The Robert Wood Johnson Foundation
September 2005
The Robert Wood Johnson Foundation commissioned a survey of business owners and persons in charge of health care benefits at American businesses… to determine attitudes and trends pertaining to health care coverage issues.
Looking at trends in answers to open-ended questions
11. Respondents from smaller businesses… When asked to speculate on the one or two most important changes regarding health insurance benefits in the next five to ten years, respondents say that health care costs will continue to increase at a rate that, if not resolved, will result in too many Americans being unable to afford health care coverage. Some respondents say that this will result in the U.S. having to adopt a nationalized/socialized government health care plan to provide universal coverage to all Americans.
Differences by Company Size:
* Smaller companies worry that they will not be able to provide health insurance to their employees in five to ten years…, and if prices do not decline, they expect to see a reduction in quality of service and an increase in the number of uninsured Americans.
* Medium sized companies foresee small businesses not being able to provide health insurance to their employees and an increase in medium to larger companies defraying more of the cost to the employee. Some respondents expect to see a more “consumer-driven” form of health care.
* Large businesses focus on annual increases in the costs of coverage. These respondents expect health care to become more consumer-driven through an increase in choices and flexibility, with employees selecting portions of a health plan to buy into to cover services they expect to need. They also expect to see health savings accounts become the norm. Some respondents mention that they expect the system to revert back to that of decades in the past when only medical catastrophes were covered by health insurance.
http://www.rwjf.org/files/newsroom/091405_CoverageBusinessPoll.pdf
And…
Health Premiums Rise 6.6%
By Christopher Lee
The Washington Post
September 16, 2005
Health insurance premiums for federal employees and retirees (FEHBP – Federal Employees Health Benefits Program) will rise an average of 6.6 percent next year, the lowest increase in nine years, the Bush administration said yesterday.
The worker’s portion of the premium will rise 10.9 percent, compared with a
5.8 percent boost in the government’s portion — the disparity that rankles the union (American Federation of Government Employees).
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/15/AR2005091501560.html
Stephen Barr’s column:
OPM (Office of Personnel Management) officials said yesterday that it appears that an increasing number of enrollees have switched coverage and chosen lower-cost (FEHBP) plans.
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/15/AR2005091502644.html
And…
Starbucks Chairman Focuses on Health Care Expenses
By Christina Ficara
All Headline News
September 15, 2005
Howard Schultz, chairman of Starbucks, announces his plans to spend more on health insurance for its employees this year than on raw materials needed to brew its coffee.
Schultz made the announcement at a Washington, D.C. meeting with lawmakers from his home state – one of several organized by Schultz to address “a growing health care crisis.”
Shultz said he hopes congressional leaders will put the issue “at the front of their agenda.”
http://www.allheadlinenews.com/articles/7000153490
Comment: It is not only business leaders that are anticipating a greater shift of health care costs to individuals; the government is leading the way by shifting more of the premium to federal employees, causing them to select lower cost plans that increase their financial exposure when accessing health care. Business leaders across the spectrum believe that this trend will accelerate.
Business leaders who really do care, such as Starbuck’s Howard Schultz, understand that it is now imperative that Congress address this issue.
Unfortunately, the RWJ survey reveals that business leaders support solutions that would reduce their costs, but at the expense of their employees who have health care needs.
Single payer isn’t even on their radar, except by default only after system collapse. If business believes that single payer would be the logical solution then, why isn’t it now? Don’t we want to avoid the pain?