While large firms (those with 200 or more employees) unanimously provide health benefits to employees, not so for smaller companies. The reason is cost. As a result, it is time for small firms to add their voice to change the system.
According to the annual Kaiser Health Survey for 2007 (available at Kaiser Family Foundation) 99% of large firms provide coverage, and of those 95% cover at least 50% of the premium cost for families. With small firms (3-199 employees) coverage is provided by only 59% of the firms, and for those that do provide coverage they only cover 63% of premiums. Why is this discrepancy happening?? Cost increases are the obvious reason. From the Kaiser Survey we see that since the Spring of 2000 health premiums have risen more than 80% in total, or more than 10% annually, well out-pacing inflation and employee earnings.
What is this doing to small businesses? It is forcing them to drop coverage in increasing numbers. It is also pushing creative solutions including funding health costs outside of traditional programs. In many cases employees are forced into individual high deductible plans, which are fine for healthy consumers, but devastating for health challenged workers. In either event, these issues help make these firms look unattractive to new workers when compared to larger firms.
Would a national health plan fix this discrepancy, yes, but only if the overall costs per capita are the same or lower. More study is needed, but it looks like small businesses should be looking for a change in policy compared to their larger competitors.
As I have argued before, we cannot keep paying the increasing costs of the broken US health care system, and we can now see that it's finally time for small companies break with the US Chamber of Commerce, which advocates augmenting the current system, and add their voice to the Physicians for a National Health Program.
Tuesday, February 5, 2008
Monday, February 4, 2008
Bush not a friend to Small Business
The figures from the Bush 2009 budget are stark; despite a solid reputation as a friend to small businesses, the figures say otherwise.
As the budget describes it, discretionary spending from 2001-2009 (the latter year as proposed) increased by an annual average rate of 5.5%, well out-pacing inflation which has averaged 2.7% since 2001, for a total increase of 53.4% over the period.
Meanwhile, the Small Business Administration budget has declined by 3.9% annually, or a full 27.0% over that time. It was the biggest percentage decline of any Agency.
Now, I get the free market and all, big fan, and the Administration's cuts at Labor and the EPA were not a surprise, but where is the love for small business, got to find your success on your own I guess. While the big tuna's like Agriculture continue to increase and bring in big bucks, not to mention the big cahuna Defence, the SBA is on it's own.
This will not change much this year, but stay tuned for what the Dems will do in this final Bush year to set things up for the new guy/gal whoever that might be.
As the budget describes it, discretionary spending from 2001-2009 (the latter year as proposed) increased by an annual average rate of 5.5%, well out-pacing inflation which has averaged 2.7% since 2001, for a total increase of 53.4% over the period.
Meanwhile, the Small Business Administration budget has declined by 3.9% annually, or a full 27.0% over that time. It was the biggest percentage decline of any Agency.
Now, I get the free market and all, big fan, and the Administration's cuts at Labor and the EPA were not a surprise, but where is the love for small business, got to find your success on your own I guess. While the big tuna's like Agriculture continue to increase and bring in big bucks, not to mention the big cahuna Defence, the SBA is on it's own.
This will not change much this year, but stay tuned for what the Dems will do in this final Bush year to set things up for the new guy/gal whoever that might be.
Tuesday, January 29, 2008
Bush still doesn't get it on Iraq
The Good and True: (following are quotes from the text of President Bush's State of the Union Address on Monday, January 28, 2008 as transcribed by the Federal News Service)
"In Afghanistan, America, our 25 NATO allies, and 15 partner nations are helping the Afghan people defend their freedom and rebuild their country. Thanks to the courage of these military and civilian personnel, a nation that was once a safe haven for Al Queda is now a young democracy where boys and girls are going to school, new roads and hospitals are being built, and people are looking to the future with new hope. These successes must continue, so we’re adding 3,200 Marines to our forces in Afghanistan, where they will fight the terrorists and train the Afghan army and police. Defeating the Taliban and Al Qaeda is critical to our security, and I thank the Congress for supporting America’s vital mission in Afghanistan.". This is good work, we should be doing it, and focusing on it.
"When we met last year, Al Qaeda had sanctuaries in many areas of Iraq..." Forget not, there was no Al Qaeda in Iraq when we entered, they came in to attack us.
Let us hope that whoever the next White House occupant is, they remember that attacking Iraq was a huge mistake, there was no Al Qaeda, no WMD's, and it is not our place to stay.
"In Afghanistan, America, our 25 NATO allies, and 15 partner nations are helping the Afghan people defend their freedom and rebuild their country. Thanks to the courage of these military and civilian personnel, a nation that was once a safe haven for Al Queda is now a young democracy where boys and girls are going to school, new roads and hospitals are being built, and people are looking to the future with new hope. These successes must continue, so we’re adding 3,200 Marines to our forces in Afghanistan, where they will fight the terrorists and train the Afghan army and police. Defeating the Taliban and Al Qaeda is critical to our security, and I thank the Congress for supporting America’s vital mission in Afghanistan.". This is good work, we should be doing it, and focusing on it.
"When we met last year, Al Qaeda had sanctuaries in many areas of Iraq..." Forget not, there was no Al Qaeda in Iraq when we entered, they came in to attack us.
Let us hope that whoever the next White House occupant is, they remember that attacking Iraq was a huge mistake, there was no Al Qaeda, no WMD's, and it is not our place to stay.
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