 |
|
|
 |
 |
Growing crisis for business, state
Decemeber 11, 2006
The Oklahoman
By Phil Busey
Action is needed quickly to avoid a growing crisis affecting individuals and businesses.
Not addressing this issue head-on will negatively impact individuals, business competition
and the state’s economy.
"Health hikes outstrip wages” (news story, Nov. 28) echos what businesses have been
fighting and known for years. Rising health care costs are out of control, negatively
affecting quality of life and competitive advantage for business. The impact is
particularly hard on small business.
Small businesses make up more than 95 percent of all business in the United States.
Small businesses in Oklahoma employ 45 percent of the state’s work force. Benefit
packages are an integral part of compensation needed to attract, hire and retain
quality employees, particularly professionals or skilled workers. Further, workers
who have health care coverage can make up a better focused, less concerned work
force. It’s tough enough for families to make ends meet, let alone be faced with
ever-increasing costs if they are lucky enough to have health insurance.
The reality is health care costs for business are rising at a minimum 13 percent
annually. In many instances, based upon a health census for a work force and claims,
the costs are usually closer to 17 percent and above. These are annual costs. Absorbing
these costs by a small business, let alone any business, can have a cumulative devastating
affect on profitability and competition.
Small business owners are being faced with tough decisions to "shop” insurance and
in some cases eliminate benefits altogether. The choice is to go out of business.
Further, the rising costs have a cumulative affect on business relationships. For
example, if a small company is a supplier to a large company, costs will get passed
on in increased prices. Eventually, despite excellent performance, some vendors
just become too expensive for large companies to use or buy from. It creates a vicious
cycle. Cost increases for the large business then get passed on. And so it goes.
Also, just getting health care coverage by small business can be difficult at best.
To compound this issue, large businesses or businesses with more than 200 employees
can self-fund. This means the risk is reduced enough that the businesses can fund
their own health care plans out of dollars that would normally be spent on premiums
for full insurance. This can dramatically reduce costs. Most businesses with fewer
than 200 employees (the majority) cannot assume this type risk. This means larger
companies maintain a competitive advantage through lower health care costs.
It’s time we call for action and if Congress fails to act, then it is in the interest
of the state of Oklahoma to take action. The cost of funding 662,000 persons without
coverage is approximately $1 billion a year. We need to be competitive and keep
jobs here. We can begin with health care relief and reform.
Busey is chairman and CEO of The Busey Group of Companies
|
|
|
5721 NW 132nd Street
OKC, OK 73142
Ph: 405.721.7776
Fax: 405.721.7779 |
|
|
|
 |
