Jun. 23, 2008 at 10:50am

Businesses reeling from health care costs

Uninsured patients aren't the only ones who should be concerned about the skyrocketing costs of health care. A new AARP survey concluded that Washington employers are buried under the pressure of rising health care costs. Most businesses plan on shifting more of the cost to their employees, while others have reduced or eliminated health care and other benefits.

The survey, "Condition Critical – A survey of Washington businesses about the future of employee health care benefits," explored the experiences and perceptions of more than 400 large, medium and small sized businesses in the state.  

"The findings paint a troubling picture for businesses and workers alike," said AARP State Director Doug Shadel. "Our state's employers have their backs against the wall.  Most will either have to ask their employees to pay more or be forced to drop benefits altogether."

Washington businesses have experienced cost increases of about 32 percent during the past three years. The outlook was particularly troubling for small businesses, where costs nearly doubled in just three years.  The majority of businesses surveyed said that, if cost trends continue, most will have to shift more of the burden to their employees, including the amount they pay for premium.

"Small business owners, their employees and dependents make up the largest segment of the uninsured population and we simply can't say that health care is our top priority and be content with the stalemate over reform," said NFIB State Director Troy Nichols.

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