New survey finds affordable health care presents greatest obstacle to business expansion

Feb 9 2010

In a new survey of 178 companies in Minnesota and western Wisconsin, employers identify affordable health care as the greatest obstacle to business expansion. Other barriers to growth were government regulations, weak investment markets and taxes. The survey was conducted by CJ Olson Market Research, an independent research firm, on behalf of HealthPartners.

“Health improvement presents an opportunity for significant cost savings because unhealthy lifestyle choices raise health care costs by at least 25 percent and perhaps as much as 50 percent”

Nearly three out of four businesses surveyed said poor health habits of employees and their families are a significant health care cost driver. Other key findings include:

• 60 percent of employers say they have increased or will increase employees’ share of costs
• One in four employers offers or plans to offer only a high-deductible plan
• While more than 60 percent of employers reported health care cost increases of ten percent or more between 2007 and 2009, nearly one in five employers reported cost increases of less than five percent compared to the national average of nearly 11 percent.
• Among companies with lower cost increases, common practices include programs to support health improvement, emotional health and health assessments.

“Health improvement presents an opportunity for significant cost savings because unhealthy lifestyle choices raise health care costs by at least 25 percent and perhaps as much as 50 percent,” said Andrea Walsh, HealthPartners executive vice-president and chief marketing officer. “Being tobacco free, exercising, eating a healthy diet and maintaining a healthy weight are the key to more affordable health care long term,” she added.

Unlike most national health care surveys, which include mostly large national companies, the Minnesota/western Wisconsin health care survey includes a range of companies from those with 50 or fewer employees to companies with 1,000 or more employees.

Source: HealthPartners