More than two-thirds of Wisconsin employers in a recent WMC survey say higher health care costs are affecting their business, as some businesses cut compensation and capital investments.
Wisconsin Manufacturers & Commerce recently released its latest Wisconsin Employer Survey, tapping 182 businesses of various sizes by email and traditional mail.
Forty-four percent of surveyed businesses reported their health care costs increased more than 10% over the last year, while 41% saw an increase between 6% and 10%.
WMC Associate Vice President of Government Relations Rachel Ver Velde says employers in the state are “at an extreme disadvantage” due to the cost burden of health care. Among respondents with locations in other states, 54% said their health care costs are higher in Wisconsin than the other states in which they operate.
“Instead of investing their limited resources into increased employee compensation or expansion of their companies, business leaders are having to pay for higher and higher prices for health care,” Ver Velde said in a statement.
When asked how higher health care costs are affecting their business, the top response from employers was reduced profitability, followed by higher costs for customers, reduced compensation, reduced capital investment, and greater difficulty with attracting talent from other states.
Meanwhile, respondents indicated making health care more affordable is the No. 1 thing the state government can do to help their business, followed by reducing or reforming regulations, reducing taxes, education reform and more.
WMC also found widespread support for legislation to require hospitals to publicly post their prices “so consumers can make purchasing decisions based on value,” with 96% of respondents in favor. Likewise, 95% of respondents said they support limiting how much health care providers can charge for procedures under the worker’s compensation program.
“Our employers are hurting, and there are policy solutions we know will work to make health care more affordable,” Ver Velde said. “We urge policymakers to strengthen Wisconsin hospital price transparency laws and enact a medical fee schedule. Both policies would improve our state’s economic competitiveness and help employers who are facing record-setting inflation.”
See the report.
