NYT: Cost of Benefits Cited as Factor in Slump of Jobs

[RamboLiberal]

http://www.nytimes.com/2004/08/19/business/19care.html?hp=&pagewanted=print&position=

A relentless rise in the cost of employee health insurance has become a significant factor in the employment slump, as the labor market adds only a trickle of new jobs each month despite nearly three years of uninterrupted economic growth.

Government data, industry surveys and interviews with employers big and small indicate that many businesses remain reluctant to hire full-time employees because health insurance, which now costs the nation's employers an average of about $3,000 a year for each worker, has become one of the fastest-growing costs for companies. Health premiums are sapping corporate balance sheets even more than the rising cost of energy.

In the second quarter, the cost of health benefits rose at a 12-month rate of 8.1 percent - more than three times the inflation rate and the rate of increases in wages and salaries.

"Health care is a major reason why employment growth has been so sluggish," said Sung Won Sohn, the chief economist at Wells Fargo.

[PROGRESSIVE1]

1. kick

[KamaAina]

2. So what's Bush* doing about it?

Oh, right, silly me.

[Rose Siding]

7. His whole plan is to cap damages and computerize RX

as far as I know. That's supposed to be the cure-all magic bullet.

[aquart]

3. Another reason not to delay instituting National Health policies.

[KittyWampus]

4. Haven't CEO Salaries Risen Expontentially Yet Again?

how is it that no matter what the economy CEO salaries always rise to ever more obscene levels?

[DaveSZ]

5. We need universal healthcare

Aren't we the only Western country without universal healthcare, or are there others?

Canada got UHC in 1984 and we got Raygun.

:puke:

[daleo]

10. More like 1964

In 1984 we got Brian Mulroney, who was just a kinder, gentler version of Reagan. Some provinces had public health care long before then. I believe Saskatchewan started it in the 1940's. There was a big doctors' strike at first, but now very few doctors would want to go back to the old ways.

[Malva Zebrina]

25. I don't know

but no responsible country/leader is rushing to imitate our inadequate and pathetic health care system.

[Liberal Veteran]

6. So if employers can't afford it and we can't afford it.....

Shouldn't we just nationalize it already?

[RebelYell]

8. I remember Hillary saying she was going to fix the health care problems

Pffft

The insurance companies have too much power

[struggle4progress]

13. The wingnuts have too much power. Destroying HC's plan was ...

... a GOP priority, for purely partisan reasons.


"Led by Newt Gingrich (R-Ga.), the Republicans withheld support for health reform on the theory that defeat of any health care legislation would mean failure for President Clinton and guarantee a Republican victory in the 1994 election."
http://www.acponline.org/journals/news/may97/plummet.htm

[bogey18]

23. People have conveniently forgotten

that the first thing Clinton tried to do was get some kind of universal health care going for the country and the Republicans slimed it. Now here we are 10 years later and guess what - it is a huge, huge crisis and the greed factor is overwhelming every attempt to put something into place that makes sense.

[KoKo]

9. "They" will find any excuse to avoid telling folks that companies aren't

hiring because their "outsourcing, merging and consoldating" in the frenzy to make money for their CEO's and Boards of Directors. They have fooled us so many times that they think they will be believed with more crap like this.

Where is the business demand for new employees? If we were actually making anything new there would be demand, but we buy what we need from overseas (look at our trade imbalance). Where is the investment by Bush's Wealthy that he gave tax breaks to? Where are the new "entrepreneurial companies" created by this money that Bush still talks about?

There's nothing new out there after the "dot coms" went bust and what was left is in India or the Venture Capitalist's/Banker's and Broker's pockets.

There's more to "businesses not hiring" than health care but they would love to have us focus on that. And yes a National Health Insurance Policy would help everyone, but they aren't addressing business demand.

My 2cents..

[2Design]

11. govenment employees get lots of benefits paid by taxpayers..

we want the same and those government employees need to make it happen

[The Zanti Regent]

12. Really? Congress cuts and cuts and cuts our benefits every year!

When I started working for Social Security in 1978, my High Option Blue Cross was $19.89 every two weeks. The same policy is now over $300 every 2 weeks. Congress repeatedly cuts our pay raises and benefits. Each year, the health insurance covers less. Our 2% cost of living raises do not cover the health insurance raises. Oh yes, there is a new long term care insurance plan, but you have to pay THE FULL PREMIUM (over $300.mo) out of your pocket.

Oh, BTW, Your Congress is hell bent on contracting out all our work to private insurance companies. If you think we get special tratment, you're dreaming!

[Skittles]

14. lol - they are cutting your pay raises

try going for years and years WITHOUT A PAY RAISE.

[SoCalDem]

16. The rank and file govt employees are getting screwed like the rest

of us.. Cream always rises..and all the goodies are at the top...as usual....

What we need is an emergency plan for right now.., and then for the whole "machine" to be dismantled..

National healthcare is a MUST.. As citizens of this country, we are entitled to share the wealth.. The resources that are part of this country should not be "owned" by a few rich men, only to be "sold" to the highest bidder.

There is a basic standard of living that ALL citizens should be privy to..

1. The ability to see a doctor when you are sick
2. The right to a job so you can support yourself & your family
3. Affordable and accessible utilities..power/heat/water
4. The right to be educated to the highest level YOU can achieve
5. A dignified old age..

I am sure that there are more that would be nice, but those are the bare necessities .. Do they cost money?? Yep.. Does the richest nation on earth have the ability to provide those things? yep..

There is NO reason on earth for the richest 5% to continue to amass wealth , as the poorest of us get poorer and sicker.

European countries are managing with far fewer resources, and yet we can't seem to figure it out??

No one is saying that pure socialism is the answer.. There just needs to be a BASIC foundation that no one goes below..

It demeans ALL of us, when some of us are mistreated..

[2Design]

18. congress is the ones who get the best benefits and the best

pay...and yes we should have national health care....

[JDPriestly]

19. Europeans have a great health care system.

I know. I lived there for many years. My children were born there, and we all benefited from the quick, easy access to medical care. My children are healthier today because of the excellent care I had in the prenatal period and they had as infants and small children. It saves money in the long run to make medical care readily available to all regardless of their economic or employment status. An ounce of prevention is much cheaper than a pound of cure.

[2Design]

20. many on this board have no health insurance

they have no pay raises.
They are contract workers because the government has made the laws such that companies have no interest in giving people insurance or benefits at all and if they clamour for it...the corporations go off shore and our congress then turns around and contracts them for jobs...

so our tax dollars help fund these 'against the average person' schemes.

I am sorry your health insurance is costing you so much.
I don't have health insurance because for the individual it is beyond your price for nothing.

And yes between the govenrment and corporations putting all our jobs off shore, we are all hurting....

I probably should have been more specific and just pointed at congress who give themselves a COLA every year after the elections and they have their own health club and very good health care....

[ninkasi]

15. I have a question...

Because of the huge cost to employers and employees alike for health care, why wouldn't big business be pushing for some kind of universal health plan? Wouldn't it save them money, too? The ones making out like bandits are the insurance companies, who seem to feel like their job is to collect premiums and deny benefits.

[happyslug]

26. Actually most LARGE businesses support National Health Insurance

The problem has been what the Government call "Small Businesses". Now Small Business sounds like your local Mom and Pop Store, or your local Mechanic, but that is NOT what the Government call small business Small Business are business that come under these Guidelines: (i.e. No more than the number given, most are just under these Guidelines):

Manufacturing 500 employees
Wholesale Trade 100 employees
Agriculture $750,000
Retail Trade $6 million
General & Heavy Construction (except Dredging) $28.5 million
Dredging $17 million
Special Trade Contractors $12 million
Travel Agencies $3 million (commissions & other income)
Business and Personal Services $ 6 Million
Except:
* Architectural, Engineering, Surveying, and Mapping Services $4 Million

* Dry Cleaning and Carpet Cleaning Services $4 million

These are the people who OPPOSE National Health Care. These are the people who employed most of the people who have no health care today (Franchises from large business are among the worse i.e. your local McDonald's). These are the people who were the key to Killing Clinton's plan (Remember the comments about a $50 Pizza because of the increase cost of such health insurance?).

Large businesses gave their employees health care years ago (Most in the early 1970s when Congress first gave them tax breaks to do so). Small Business refused then and refuse no to do so and it was the opposition of small business that has been the key, and these are the same businesses being the most hurt by the recent increase in Health care. Large Businesses generally are self-insured, i.e. what ever their employee uses in health care the Business pays for (Generally through an Health Care Insurer but the Insurer is just a middle man to process the claims, the bills are paid by the Business).

With Small Business the business pays the insurer for health INSURANCE and the Insurance company pays the bills. This is MORE expensive than self-insurance but if a major bill hits the Self-Insurer is not bankrupted (The Health Insurer takes the hit). Most large Businesses have a large pool of employees and are able to take such a hit most small businesses can not, thus the difference.

With the Clinton Boom Self insurer actually lost out, Health Insurance was able charge less do to the insurance companies investment in the stock market of the 1990s (Where the Insurance Companies put the premiums NOT used in any one year). With the Crash of the Stock Market most Insurer had to raise rates to cover what they have agreed to insure. Thus the large increase in the last 3-4 years and the growing concern over Health Insurance. Most Large businesses are doing nicely right now (they may be off-shoring but health care is NOT zooming for them like it is for "Small Business").

Thus large Business has always supported National Health Care, it would relieve them of cost of Health Care they are providing today. It is "Small Business" who has opposed Universal Health Care for all they see is increased costs, costs most of them are NOT paying now.


Small Business Administration:
http://www.sbaonline.sba.gov/

Small Business Administration Regulations:
http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?sid=8541778c18b713da3069e6ed5fd50034&c=ecfr&tpl=/ecfrbrowse/Title13/13cfrv1_02.tpl

Small Business Defined:
http://www.sba.gov/size/summary-whatis.html

[jpgray]

17. Sorry, average CEO to worker pay has gone from 42 to 1 to 541 to 1

You cut the costs of a corporation, they will simply use the profit to enrich themselves. I can't believe the way some of these articles argue 'oh the poor corporations just need a bit more before they start to give back.' Corporations aren't created to 'give back' when costs are cut for them, they're created to ruthlessly acquire profits. I don't know why anyone but an abject idiot would bother pretending differently.

[2Design]

21. your right corporations are like the government with their cuts

they cut the bottom while giving themselves a large percentage of the cut.....

Government says it will cost us in taxes....they already take most of our taxes and spend it on themselves and travel.... How much has Bush use on campaigning of our taxes already....more than most of us together make in a year....

[Imalittleteapot]

22. KICK. HMO premiums for my employees going up 20%.

I pay 100% and close to deducting a portion of the premium from their pay.

[robcon]

24. This has happened for years in Europe.

Many companies in Europe (e.g., Italy, France, Germany) won't hire full-time employees because of the huge benefits required, and the restrictions on firing the employees if business turns south.