Sponsored by George Fox University
Home Archives September 2006 What’s the cure to our health care system?

What’s the cure to our health care system?

| Print |  Email
Friday, September 01, 2006

s_Robin

Each year, more and more businesses drop their employee health care coverage because they can’t afford health plans. Each year, more and more Americans — almost 50 million now — become uninsured because they can’t afford health plans. 

From 2000-2005, the percentage of businesses offering health care dropped from 69% to 60%, driven largely by a significant decline in participation from small business. In an economy dominated by small businesses such as Oregon’s, this contributes to the 600,000 uninsured people in the state.

But it’s easy to glaze over statistics. Listen instead to Umpqua Dairy COO Steve Feldkamp:

“Health care costs have the ability to do in the company.”

This is a 75-year-old family-owned business that employs 200 people — one of the top employers in Roseburg. In the past five years, health care costs for Umpqua Dairy have doubled; it now costs the company $750 per employee for a family policy, with health care accounting for almost 16% of the dairy’s expenses.

Feldkamp says that wages are being held back by escalating costs. “Our health care package has grown, but the take-home pay hasn’t increased that much. You can’t afford to do it all.”

He says one of the thorniest topics this year with his union was the portion of health care costs employees would shoulder. Until now, the company paid the entire cost for workers and their families because it wanted to do the right thing and remain competitive. But, “In this day and age, because costs have gotten so large, at some point you have to pass a portion of it on,” Feldkamp says.

What’s the cure? “I’ve never been in favor of the government coming in and fixing things,” he says. “I’ve always thought that a free market economy is the best direction for this country and ourselves. However…this burden has become so big that I’m not sure how we go about fixing it on our own.”

Maybe one cure is to end employer-based health insurance, which could give both cost-crushed businesses and the millions of Americans with no health coverage a chance to thrive.

Labor leader Andy Stern, head of the 1.8 million member Service Employees International Union, created a stir when he said in the Wall Street Journal recently: “The employer-based system of health coverage is over. This may sound shocking, coming from a union leader...but the system is collapsing.”

The Heritage Foundation proposes offering everyone the same tax break for health insurance that companies get, doing away with the employer-based model and giving financial assistance directly to individuals to buy health insurance. The National Small Business Association, a lobbying group, has proposed similar ideas.

Whatever the fix, one thing is clear. Business needs to lead the effort to get itself out from under the unpredictable and spiking health care costs, and toward a system that allows all of us to afford a basic level of health coverage — no matter where we work, or if we lose our jobs. The political world has proven itself incapable of doing it.

In this issue, we explore one of those efforts — former governor John Kitzhaber’s Archimedes Movement — and the challenges it faces. There are other dedicated, concerned people in Oregon also looking for a solution.

We need to find one fast. Our businesses —  and our lives —  are at stake.

— Robin Doussard
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Who said we should sell in May?

Contributed Blogs
Friday, July 18, 2014
BullMarketBY JASON NORRIS | OB GUEST CONTRIBUTOR

Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”


Read more...

Updated: Disrupting innovation

News
Tuesday, July 08, 2014
070814 thumb disputive-innovationBY LINDA BAKER  | OB EDITOR

The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation  — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment. 

Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.


Read more...

Q&A: David Lively of Organically Grown Co.

News
Tuesday, July 01, 2014
OGCLogoBY HANNAH WALLACE | OB BLOGGER

Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.


Read more...

13 West Coast seafood species now 'sustainable'

News
Tuesday, June 03, 2014

Fishing OrBiz Fishing 0357 ADOBErgbCiting the transition to catch shares management as a key to rebuilding stocks and reducing bycatch, 13 species caught by the West Coast trawl fishery today earned designation from the Marine Stewardship Council (MSC) as sustainable.


Read more...

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

South Waterfront's revenge

News
Thursday, July 24, 2014
MoodyAveBY LINDA BAKER | OB EDITOR

Remember the naysayers?  Those who called the South Waterfront aerial tram a boondoggle?  Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS