Strategies: Small businesses suffer on health care issue
— -- Something must be done — and done now.
Here's what I wrote in 1993, the last time health payment reform was seriously considered:
"When it comes to the debate over health insurance, one thing is for certain: the current system is terrible for small business ... small businesses usually have the hardest time getting insurance, the smallest choice among providers, and pay the most for the least coverage. Many people who would like to start new businesses are stuck in jobs because they can't afford to give up health insurance from their current employer. So, please Mr. President and Congress Members, give us a break!"
Here's what's happened since. Things have gotten far, far worse.
The percentage of small businesses offering health care coverage has withered, employees pay more and health costs have shot through the skyscraper's roof.
Market forces have not — and will not — work. We need government intervention and a public health insurance option. Or, trust me, five years from now, if you own or work for a small company, you will not be able to afford health insurance.
Our current system of health care payment developed in the 1950's and 1960's, when our fathers worked for big corporations and health care was cheap. It made sense that health insurance was provided by large corporate employers. Now Dad — and Mom — and you — are self-employed or work for a small service company or start-up that could be the next Google.
The system must be changed.
Here's how it really works for small businesses:
• You're interviewing two candidates for a job. One is in his 20s — he'll cost less than $200 a month for health insurance. One's in her 50s — she'll cost more than $700 a month. Our current health payment policies contribute to age discrimination.
• You look at your income statement. By far, your fastest growing cost is your health insurance. Small businesses pay nearly 20% more than big corporations. So, you decide to not hire, use independent contractors, or end health insurance altogether.
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