"Something must be done," said one business owner. "My premium for an employee
with family coverage is now ... over TEN THOUSAND DOLLARS per year!"
PITTSBURGH, Feb. 20 /PRNewswire/ -- SMC Business Councils conducted an
online survey last week of 150 local small business owners' current thinking
about issues related to skyrocketing health care costs.
According to SMC President Cliff Shannon, "Business owners' frustrations
with seemingly uncontrollable health insurance costs are mounting. Passing
along more costs to their employees -- or even dropping job-based coverage
altogether -- is seen by larger and larger numbers of entrepreneurs as a
financial and competitive necessity. And although deep misgivings remain
about the consequences and costs of a national, single-payer health care
system, there is increasing agreement that this outcome may be inevitable."
The SMC survey collected on-line responses from a sample of 150 western
Pennsylvania business owners. Highlights of the results, including additional
comments from respondents, covered three major areas:
Health Savings Accounts. More than one-half of the small business owners
who responded agreed that health savings accounts (HSAs) and more individual
responsibility could make a measurable difference in containing health care
costs. But only one-fifth of respondents indicated that they are actively
considering an HSA option right now. More than one-half believe that the
President's proposals will have no effect on the likelihood of their
organization offering an HSA option in the future.
One respondent said: "There is one significant problem with the move to
HSA-based insurance. Insurers can decline coverage or coverage for pre-
existing conditions to consumers of individual policies. This is a huge
deterrent for those who would otherwise favor HSA/high deductible coverage."
Controlling health insurance costs. Among respondents whose organizations
offer job-based health insurance coverage, nearly 60% reported 2005 health
insurance premium increases of 10% or more. Among these, about 40% said their
2005 premiums rose by 20-100%.
According to another frustrated business owner, "Something must be done to
fix the current system. My premium for an employee with family coverage is
now ... over TEN THOUSAND DOLLARS per year!"
Most respondents indicated an intention to pass some or all of future
coverage cost increases to their employees. Three out of five respondents
said they would consider rewarding employees in the future for maintaining
healthy lifestyles or taking steps to improve unhealthy behaviors.
These insightful comments from respondents were noteworthy:
"Everybody wants to pay for a Kia and drive a BMW."
"Health insurance is just too costly for small businesses and
individuals."
"Health insurance costs are killing our company's profitability."
One-out-of-eight respondents whose organizations offer job-based coverage
today said that they would seriously consider terminating job-based coverage
this year if upcoming premium hikes were similar to 2005.
Although relatively few small employers offer HSA's currently, larger
numbers are switching to high-deductible health insurance coverages in order
to pass along some of increased coverage costs to employees. More than one-
fifth of respondents to the SMC survey have already switched to high-
deductible coverage, and more than two-fifth's of remaining respondents
indicated that they plan to consider switching to a high deductible plan at
the next renewal.
How to control rapidly rising societal health care costs. Survey
respondents selected their three "most significant drivers of health care
costs." Their cost-driver nominees were virtually identical to those
identified in parallel SMC online polls in 2004 and 2005.
- An aging population that needs more health cares services (61%)
- Prescription drug prices and increased utilization of Rx (52%).
- Profiteering by insurers (50%).
- Medical malpractice lawsuits (47%).
- Too little individual responsibility for health care costs (30%)
- Virtual monopolies by a few large hospital systems (23%)
Nearly two-thirds of SMC respondents said they thought that a national,
single-payer system was undesirable - but nearly one-half of all surveyed
agreed that a national, single payer system is (politically) inevitable.
Comments from respondents included:
"American business is at a huge disadvantage due to high health care
costs."
"A universal standardized system that covers everybody would be fair and
probably less expensive for each individual."
"A national health care system is an absolute necessity to keep this
country's businesses competitive with the rest of the world."
SMC Business Councils is a non-profit trade association representing 3,500
small business owners in western and central Pennsylvania. The association is
headquartered in Churchill with a branch office in Harrisburg. Additional
information on SMC's health care positions can be found on the Internet at
http://www.smc.org and on the SMC blog,
http://smcbusinesscouncils.blogspot.com.
SOURCE SMC Business Councils
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Related links:
http://www.smc.org
http://www.smcbusinesscouncils.blogspot.com
CONTACT:
Mary Heindl of SMC Business Councils,
+1-412-371-1500 x 229
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