Healthcare Reform - What Does Small Business Think

January 30, 2023

Jan 30, 2023

Good Day Healthcare Advocates

Every day we advocate for better healthcare for all of us is a good day. Thank you also to all of you advocates who have recently subscribed and to those who have asked for particular topics (use the comment button below). Some of the topics in work are the middlemen benefit managers and rural healthcare, and how Healthcare affects various groups and industries.. Thank you.

Mission

The Healthcare delivery system in the United States is a patchwork that leaves much to be desired. It is the most expensive system among the top 35 industrial countries and covers far fewer participants delivering lower levels of quality care than many of our peer nations. This blog will provide:

Current problems in healthcare
Actions you can take
References.

Current State - Small Business Viewpoint

I decided to see how business feels about Universal Healthcare because 49% of Americans get healthcare coverage through work. We saw in the pandemic that many Americans lost jobs and healthcare in one fell swoop. Note that, 47% of all employees work for a small business (< 500 employees) and 99% of all businesses in the US are small.

BUSINESSES ARE WORRIED AND ACTING (NOT FOR THE BEST)

The Commonwealth Fund examined how small businesses feel about Universal health care. Here is a link to their research. When asked to rank business concerns 37% were worried most about the cost of providing health care. It was the biggest concern they voiced, over even finding new customers (33%). Choices of health plans and the rising cost of prescription drugs were the top two identified problems.

To deal with rising costs many employers are choosing health policies that shifted more of the cost to employees.

48% increase copays and deductibles
25% required higher premiums and
16% removed dependent coverage.

Only 29% could negotiate a lower rate.

Business owners know the cost is too high but can’t point to one culprit. 60% of those surveyed blamed the insurance companies and pharmaceutical companies. It’s no wonder, since drug prices are not capped/negotiated to the benefit of patients. We saw this when we examined Pharmacy Benefit Managers. Remember that the Congressional Budget Office identifies about $600 B /year wasted every year on overhead and excess prescription costs (CBO Report).

Many small businesses want to band together to create large purchasing blocks or groups to buy insurance. They also want someone else to evaluate policies since they don’t have the time or expertise to do it.

It is interesting to note that Warren Buffet, CEO of Berkshire Hathaway, describes the American healthcare system as a "tapeworm in the American economy. Charlie Munger, his VP, came out in favor of Universal Healthcare to make American business more competitive. (https://www.yahoo.com/video/charlie-munger-health-care-113958431.html.

It is also interesting to note that GM came out in favor of Universal Healthcare in 2005 since the lower costs will help them compete with foreign companies, like Toyota, where Universal Healthcare is the norm.

ECONOMY WILL COLLAPSE WITH UNIVERSAL HEALTHCARE - NOT SO

Let’s put a popular myth to rest. Many people talk about the collapse of stock markets and the economy if we transition to Universal Healthcare, even though according to the Congressional Budget Office it would save about $600 B/year (about 1/6th of all healthcare costs). Switzerland went through that fear mongering in 1994 when they decided to embark on the transition.

Insurance companies, especially, tried to scare people out of it. However, after 10 years of operations with Universal Healthcare being offered by private insurance companies, their industry trade organization president said that they had never sold more policies or made more money. People bought mandatory basic insurance, optional health insurance and then bundled everything with homeowner/renter and life insurance. I could hear him smiling through the radio.

SUMMARY

Most businesses are small < 500 employees and they employ 47% of us. When we lose our jobs we lose our healthcare. Since employers want employees to have healthcare they try hard to find policies they can afford and stay profitable. Some of the ways they do it are to increase copays and deductibles and premiums, often eating up employee wage increases. Universal Healthcare can fix all of this but we have to make the effort.

What You Can Do

Urge any business owners you know to look at Business Leaders for Health Care Transformation https://www.blhct.org . They have a wealth of resources for small businesses including many case studies.
Contact your federal representatives and let them know it is time for Universal Healthcare

Use RESISTBOT and Text SIGN PZDHMR to tell the President, Vice President, your senators and representatives

49% of us get healthcare through work. When we lose our jobs it is hard and expensive to get new coverage. Businesses are having a hard time staying competitive. In fact, to provide coverage small businesses

Increase copays and deductibles (48%)
Required higher premiums and (25%)
Removed dependent coverage (16%)

That doesn’t help businesses or their employees.

We can do better, I want you to support UNIVERSAL HEALTHCARE. I want it passed in the Congress and I want a detailed implementation plan. You can do this. We need you to do this.