Employer Health Costs in a Global Economy

Voters are sending a clear message: they are concerned about the economy and worried about being able to afford health care. To examine this important nexus of health care and the economy, the New America Foundation welcomed Senator Deborah Stabenow (D-MI), the Wall Street Journal’s Laurie McGinley, and representatives from the business, labor, and economic communities to discuss the impact of rising health care costs on U.S. competitiveness and American jobs. The Capitol Hill event was focused on the recent work by Len Nichols and Sarah Axeen entitled, “Employer Health Costs in a Global Economy: A Competitive Disadvantage for U.S. Firms.”

Senator Stabenow kicked off the event by thanking Len and New America for producing the data necessary bolster what she has believed for years: our nation’s health care crisis costs Americans jobs and hinders the ability of U.S. businesses to thrive in a global economy.

Len Nichols, Director of the Health Policy Program at New America, argued that while economic theory teaches us that it is workers—rather than employers—who pay for health care through lower wages, employers face a variety of constraints that may make it difficult for them to fully shift health costs in the short run. Therefore, health care costs are having a real effect on employers and workers.

Following Len’s presentation, Joe Antos from AEI spoke about the importance of focusing on the steps necessary to get our nation from its current health system to a reformed system. Charlie Kolb, President of the Committee for Economic Development, stressed the need to transition away from an employer based system, while Andrew Webber, President and CEO of the National Business Coalition on Health, argued that employers should demand the changes necessary to continue to offer health benefits and improve the system. Finally, Gerald Shea, Assistant to the Director of Government Affairs for AFL-CIO, stressed the need for substantive change through a public-private partnership. Shea emphasized that the status quo is unsustainable for workers and employers. Panelists were largely in agreement that rising health care costs represent a serious problem for employers.

Stay tuned as the Health Policy Program continues to examine the economic case for a quality health care system for all Americans.
See map: Google Maps

Participants

Featured Speakers

• The Honorable Deborah Stabenow (D-MI)
  United States Senate

• Len Nichols
  Director, Health Policy Program
  New America Foundation

• Joseph Antos
  Wilson H. Taylor Scholar in Health Care and Retirement
  American Enterprise Institute

• Charles E. M. Kolb
  President
  Committee for Economic Development

• Gerald M. Shea
  Assistant to the President for Governmental Affairs
  AFL-CIO

• Andrew Webber
  President and CEO
  National Business Coalition on Health

Moderator

• Laurie McGinley
  Deputy Bureau Chief, Global Economics
  The Wall Street Journal

Related Links

• Len Nichols' Powerpoint Presentation (PDF, 17 pp.)
• Len Nichols' interview with WTOP anchors Dimitri Simes and Bob Kur
• Issue Brief: Employer Health Care Burden (PDF, 4 pp.)