A group of 40 corporations
added its collective
voice to the health care debate on Monday, May 7, but like
other
coalitions trying to influence reform, it stated principles—like a
market-based system and universal coverage—while avoiding
specifics.
In a Capitol Hill news
conference, the Coalition to Advance
Healthcare Reform emphasized that all
Americans should have health
insurance and they should take personal
responsibility for maintaining
a healthy lifestyle.
The group also says that
financial assistance should be
provided for those who can’t afford coverage and
people buying
insurance on their own should get the same tax advantages as
corporate
purchasers.
The coalition is seeking to
spur political action on health
care in the current session of Congress, which
will end in late 2008, b
ut it is not backing specific
legislation.
“We intend to be an active
participant in the debate,”
Steve Burd, CEO of grocery chain Safeway Inc. and
chairman of the
coalition, said during the Capitol Hill event. “We think we can
make a
real difference in the health of Americans. We can make a real difference
in the health of our employees. There is a lot of momentum building,
and we are
determined to solve this problem.”
Sen. Ron Wyden, D-Oregon, said that the coalition is changing the political
calculus of health care from where it was in 1994 when the Clinton administration
proposed an overhaul of
the system.
Back then, Wyden says,
corporate America
argued that reform was too
expensive; now it’s saying that the status
quo is harmful.
“What you’re seeing today is
how the business community has
transformed the health care debate in America,”
he
says.
One of the reasons the
coalition has jumped into the health
care fray is because costs are rising
inexorably. In a Washington Times
opinion piece published May 7, Burd wrote that health
care spending for an
average Fortune 500 company will exceed its net income next
year.
But he is not advocating that
companies stop providing
coverage for employees.
“We’re not looking for a way
out of health care,” he
says.
Instead, he asserted that costs
will decrease if the right
incentives for healthy lifestyles are put in place
and the quality of
care improves.
“There’s really a net reduction
in the nation’s health care
bill if you design the system correctly,” he
says.
General Mills, a member of the
coalition, wants to promote
the success it has achieved with wellness and
disease management
initiatives and health savings accounts, according to CEO
Steve
Sanger.
The company has kept health
care spending at or below the
inflation rate and has no plans to drop
coverage.
“We’ve delivered value for
employees in the system,” Sanger
says. “We’re not anxious to get out of
that.”
Wyden’s bill, the Healthy
Americans Act, would remove
employers from the health care equation. Under his
measure, individuals
would purchase coverage directly from private
insurers.
Companies would make
contributions into the system based in
part on the number of people they employ.
The bill also establishes
incentives for prevention and wellness. Companion
legislation was
introduced in the House on May 2.
The primary Senate Republican
sponsor of the bill said that if
the link between employment and health coverage is
severed, it will
empower individuals as consumers. They will have greater
incentive to
find high-quality, affordable health plans—a different motivation
than
companies have.
“The employer has made the
choice on economic grounds
rather than quality grounds,” Sen. Robert Bennett,
R-Utah, said during
a Capitol Hill event last week.
Another advantage of the Wyden
approach is that it puts all
businesses on a level playing field, according to
Rep. Brian Baird,
D-Washington and author of the House version of the Wyden
bill.
“There’s no more cost shifting
from the uninsured to the
insured,” he says.
But prospects for getting
employers out of the health care
business anytime soon may be slim, according to
one of the key players
in the health care debate on Capitol
Hill.
“I don’t see this Congress
moving on that point this year,”
Sen. Max Baucus, D-Montana and chairman of the
Senate Finance
Committee, said during a meeting with reporters on May 7. “Those
employees who work for big companies have good health care coverage,
and they
don’t want to lose it.”
Baucus also doubted that
President Bush’s proposal to end
the health care tax deduction for corporations
and treat the benefit as
income would be approved.
Baucus is an advocate of
universal coverage that involves a
combination of private and public funding.
Steps toward that goal
likely will start with expanding coverage for
children.
“I think we should go as far as
we can in this Congress,”
he says. “In the interim, children’s health insurance
is an important
part of this process.”
Wyden vows action before the
2008 presidential
election.
“We’re going to make a big push
to fix health care in this
session of Congress,” he says.
But Wyden and others advocating
reform might want to tread
carefully. A recent poll by the National Business
Group on Health
showed that employees value health care more than any other
benefit
they receive—and they’re loath for employers, or the government, to
tinker with it.
“They will not be eager for a
change that is scary and
might be complex for them to understand,” Helen
Darling, president of the
organization, said at an April 12 event where the poll was
released. “A
proposal to move to an individual market is not going to be very
popular.”
—Mark Schoeff
Jr.
Related links and stories:
Oregon Senator Touts Healthy Americans Act
PODCAST: Safeway
CEO Steven Burd talks about health care reform in this exclusive Workforce
Management interview
Health Care Proposal Scorecard
Better Health Care Together
The Coalition to Advance Healthcare Reform