Health care taking financial toll, task force told

Business leaders say costs hurt Utahns more than gas, food

By James Thalman
Deseret News
Published: Saturday, June 21, 2008 12:02 a.m. MDT
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The state's health-care system is in much worse shape and is having a much greater impact on Utahns' financial well-being than the skyrocketing price of gasoline, food or any other cost of living, members of a special legislative task force were told repeatedly Thursday.

Business leaders told the task force that while the price at the pump may be literally bringing people to tears, uncontrolled cost increases and varying degrees of quality of medical care is a combination that is bringing the entire economy to its knees.

Lane Beattie, president of the Salt Lake Area Chamber of Commerce, briefly choked back tears himself when assessing the burden businesses are shouldering by offering insurance benefits packages to employees.

"If there is one thing we all must understand, the status quo of health care is absolutely unacceptable to Utah businesses," Beattie said. "Insurance premiums are out of control, and we have no choice but to demand change. There is no accountability in our health-care system, and if we don't fix it, the state that is time and again cited as the best managed in the country will lose our competitive edge economically." The impact of uncontrolled health-care costs is five times the effect of gasoline prices on a family's budget, he said, noting that a health plan that cost an employer $700 per month in 2006 was $932 a month in 2007.

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The price of insurance premiums are rising 10 times faster than household income, currently $11,480, Beattie said. That is much more than the total annual income of someone on minimum wage. Those figures are just part of the "overwhelming evidence" that the entire system must be retooled, Beattie said. The number of businesses offering a health-insurance benefits package to employers — where most people obtain coverage — has reached an all-time low of 44 percent. Utah currently leads the nation in the number of business that have simply stopped offering medical benefits over the past four years, he added.

"We are beyond the critical stage, and we are unified in our demand that things must change," he said. "Real change requires real change, not just tinkering." Sen. Sheldon Killpack, R-Syracuse and task-force co-chairman, said the figures provide yet another reality check to the task force. He urged the chamber to provide solutions, not further descriptions of how badly the system is broken.

Task-force member Sen. Wayne Niederhauser, R-Sandy, said one solution must be to change the system's incentives. They must be switched from more money for more expensive care and emergency room services to ongoing primary care to prevent illnesses from becoming critical. The system is caught in both a moral and financial dilemma, said task-force member Rep. James Dunnigan, R-Taylorsville. Providers are legally bound to provide care to anyone who walks into an emergency room, but the system is being overwhelmed by the cost of providing that care.

3 comments

Recent comments

Why are healthcare costs skyrocketing while insurance companies continue...

Insurance | June 23, 2008 at 3:31 p.m.

My son owns his own contracting business - building homes for Ivory...

Why or who made choice | June 21, 2008 at 2:50 p.m.

problem is very simple. Bottom line = nobody wants to PAY.

the Health care | June 21, 2008 at 11:25 a.m.