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08-20-2004, 10:58 AM
Rising health insurance costs impacting job creation
08:59 PM CDT on Thursday, August 19, 2004
By BRAD WATSON / WFAA-TV
New Texas unemployment numbers released Thursday show the unemployment rate stayed the same from June to July, even though employers added 5,600 jobs.
There is growing evidence in the Lone Star State - and across the nation - that companies would create more jobs if not for the high cost of health insurance. It's fast becoming an issue that could have a bearing on November's presidential election.
At Oak Cliff Office Supply and Printing, a business that sells and delivers to other businesses, there are eight full-time employees but enough work for 12. Owner Ken Caldwell has held off hiring extra workers, however, because of the rising cost of health insurance.
"Health insurance is a prime factor on limiting how many we can bring in at a particular time," Caldwell said.
Some economists now say health insurance is a big reason companies aren't adding more new jobs.
Firms such as Oak Cliff Office Supply must hire only if they can afford it, while dealing with the existing cost. The business has already reduced the amount it pays for the current employees' health, dental and vision insurance from 75 to 50 percent.
"The increases have been substantial the last year or two, especially," Caldwell said.
The nominees for president offer different solutions. Republican George W. Bush said the new tax-free health savings accounts give consumers a way to pay for care, and he supports legislation for businesses to join together and buy through trade associations.
Democrat John Kerry proposes the government cover most of catastrophic medical care.
"This is a big concern for North Texas businesses and their employees, because surveys show they and their employees pay more for health insurance," Kerry said.
One survey found the average monthly cost per employee to be more than $300. Family coverage tops $900 - both higher than the national average.
A group that represents North Texas employers said that's because just three companies run the largest hospitals.
"Naturally, the costs are going to be a little bit higher, because the health plans have to pay more to the hospitals who have been able to negotiate better contracts," said Marianne Fazen of the D-FW Business Group On Health.
As long as health care costs keep mutiplying for employers who pass them on to employees, fewer new jobs will be delivered.
08:59 PM CDT on Thursday, August 19, 2004
By BRAD WATSON / WFAA-TV
New Texas unemployment numbers released Thursday show the unemployment rate stayed the same from June to July, even though employers added 5,600 jobs.
There is growing evidence in the Lone Star State - and across the nation - that companies would create more jobs if not for the high cost of health insurance. It's fast becoming an issue that could have a bearing on November's presidential election.
At Oak Cliff Office Supply and Printing, a business that sells and delivers to other businesses, there are eight full-time employees but enough work for 12. Owner Ken Caldwell has held off hiring extra workers, however, because of the rising cost of health insurance.
"Health insurance is a prime factor on limiting how many we can bring in at a particular time," Caldwell said.
Some economists now say health insurance is a big reason companies aren't adding more new jobs.
Firms such as Oak Cliff Office Supply must hire only if they can afford it, while dealing with the existing cost. The business has already reduced the amount it pays for the current employees' health, dental and vision insurance from 75 to 50 percent.
"The increases have been substantial the last year or two, especially," Caldwell said.
The nominees for president offer different solutions. Republican George W. Bush said the new tax-free health savings accounts give consumers a way to pay for care, and he supports legislation for businesses to join together and buy through trade associations.
Democrat John Kerry proposes the government cover most of catastrophic medical care.
"This is a big concern for North Texas businesses and their employees, because surveys show they and their employees pay more for health insurance," Kerry said.
One survey found the average monthly cost per employee to be more than $300. Family coverage tops $900 - both higher than the national average.
A group that represents North Texas employers said that's because just three companies run the largest hospitals.
"Naturally, the costs are going to be a little bit higher, because the health plans have to pay more to the hospitals who have been able to negotiate better contracts," said Marianne Fazen of the D-FW Business Group On Health.
As long as health care costs keep mutiplying for employers who pass them on to employees, fewer new jobs will be delivered.