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The Business of Health Care Report
My topic today is employee unrest
over health benefits. First it was the machinists at
Lockheed Martin in April 2003 striking over benefits. It wasn’t about pay raises and not even
the rising cost of health benefit coverage. It was about the change in prescription drug
co-payments from a flat fee to a percentage of costs. More recently it’s been SBC
employees and retirees – or more specifically the Communications Workers of America – running
radio ads saying that because a company makes a profit, the firm should not pass along
increasing health benefit costs to employees. Then, in late April, the
Equal Employment Opportunity Commission approved regulations exempting retiree health
benefits from the federal age discrimination law. The new ruling would let employers
reduce or eliminate health benefits for retirees age 65 and older. Fearing that the
action will jeopardize access to health care for 12 million Medicare beneficiaries, the
AARP is preparing for litigation against the ruling should it pass final review by
federal agencies. There are some facts concerning
this dilemma to consider. First, it is true that health care costs continue to rise due to
labor costs, technology advances and most notably because of rising utilization of health
services. Second, it is true that employees prize the security of having health insurance and
seniors value Medicare. Third, health benefit costs are rising at a time when wages are not
rising as fast. Meanwhile, employers argue that passing along more
of the costs of benefits to employees and retirees will make them prudent consumers of health care, resulting in more stable health care costs for all. Without a doubt, the most expedient road to stabilizing health care costs is for all of us
to take better care of our health and use benefits more wisely. For Texas Health Resources
and its family of hospitals - Harris Methodist Hospitals, Presbyterian
Healthcare System and Arlington Memorial Hospital - I'm CEO
Doug Hawthorne
with "The Business of Health Care Report" on NewsRadio 1080 KRLD.
©
2004 Texas Health Resources |
I'm Doug Hawthorne, President and CEO of Texas Health Resources, with
"The Business of Health Care Report" on 