Choosing benefits plans for employees
is becoming a bigger issue by the day.
The cost of employee benefits continues to rise at a rate that outpaces the
cost of living. At the same time, companies
must offer the widest range of desirable
benefits to retain the highest number of
employees.
“Consultative services can only go so far
in helping employers balance the needs of
employees with budget demands,” says
Sam Weber, president of the Chambers of
Commerce Service Corp. “A unified business community involved in reform of the
health care system is imperative as we
seek long-term solutions.”
Smart Business talked to Weber about
current issues and the potential for solutions.
How do employers handle rising employee
benefits costs?
Most employers condense premium
costs by increasing plan deductible and co-payment amounts. A growing number of
employers utilize qualified high-deductible
health plans coupled with Health Savings
Accounts (HSAs).
Is shifting costs to employees a good solution?
Cost-shifting is not necessarily good or
bad. The issue is that employers and the
industry shield employees and consumers
from the true costs of benefits. Personal
responsibility for costs in the form of higher deductibles and co-pays creates discriminating shoppers and the absolute
need for information transparency.
Are rising costs felt more by small or large
businesses?
Businesses of all sizes feel the crunch.
Right now, you read more about large businesses feeling the effects as the first baby boomers approach retirement age.
The imminent flood of baby boomers into
the Medicare system promises to create
enormous pressure on the federal budget.
Is this a federal or state problem?
Politicians and activists of all stripes have
announced reformation plans. On Jan.
17th, Pennsylvania Gov. Edward G.
Rendell announced the ‘Prescription for
Pennsylvania’ to increase access to affordable health care coverage, improve the
quality of care and bring costs under control.
How do you feel about Gov. Rendell’s plan?
We welcome the opportunity the governor has created for us to engage in the
debate on how to create a sustainable system.
His proposal is comprehensive, but it
contains a number of concepts that trouble the business community and other
interest groups.
All segments of society have played a part in creating today’s system. Dealing
with today’s problems and building the
foundation for addressing tomorrow’s difficult issues will require significant involvement from a unified business community.
Why is it important for businesses to be
engaged in reform?
The business community is the only
viable counterweight to the array of competitive interests.
And businesses pay the lion’s share —
premiums plus taxes — and that is how the
system is funded. So the business community must have a seat at the table.
Are you optimistic about finding solutions
and reform in PA?
Success depends on the way we
approach the process. Compromise is crucial to stabilizing the system. Reform is not
about demonizing doctors, hospitals,
health plans, employers or other stake-holders.
All of the stakeholders involved with the
current system need to be willing to adapt
and to change behaviors.
The road to reform will be difficult to
travel with significant stakes. Our system is
too deeply embedded in the economic and
social fabric of communities across Pennsylvania for failure to be an option.
SAM WEBER is president of the Chambers of Commerce
Service Corp. For more information about plans offered by CCSC,
visit the Web Site www.chamberchoice.com. Reach Weber at
(800) 377-3539 or [email protected].