I have held that reform of the US health care system will not occur until a meaningful number of middle-class voters lose coverage, causing them to focus on health care availability, price, and access. Bob Laszewski of Health Policy and Strategy Associates is of the opinion that large employers will be the force behind any real health care reform.
I have too much respect for Bob to disagree with his views, and in any event it appears both events are now occurring.
California HealthLine reported on last week’s health care summit in Washington DC, where business leaders and elected officials gathered together to decry the cost of health care and access issues, and discuss potential solutions. Not much new here, expect that Starbuck’s, Pitney Bowes, Costco, Honeywell and Verizon were all in attendance along with several senators and governors. It is indeed good news that there is more dialogue, but the key message here is the combined meeting of business leaders and elected officials. While the public musings and declarations are helpful, it is likely that the executives were even more forceful in their private conversations with the politicos.
I can envision a moment before the recorders were turned on when Pitney Bowes (headquartered in Connecticut) execs were telling elected officials about the impact of health care costs on their business call centers, and more specifically about cost-benefit evaluations that indicate off-shoring these functions is starting to look more appealing, in large part due to health care costs.
Verizon and Honeywell’s representatives looked on, nodding in agreement, while the politicians adopted the “deer in the headlights” look associated with fear of lost jobs and votes.
Meanwhile, the number of employers offering health insurance declined from 69% in 2000 to 60% in 2005.
73% of the employers not offering coverage said high insurance costs were very important in their decision to not offer insurance.
Interestingly, only 16% of employers believe consumer-directed health plans (CDHPs) are “very effective” in lowering insurance costs. Even more telling, this was the highest score given to any cost-containment strategy.
Clearly, employers are giving up on health insurance because they can’t afford it, and don’t see any promising approaches on the horizon that will make any appreciable difference.
What does this mean for you?
Large employers, small employers, and employees are all paying a lot of attention to health care coverage and cost. The stars are not yet in alignment, but are certainly moving closer to the point where the momentum behind real health care reform will become irresistible.
Sep
19
