Job-based health coverage report shows weakness of costly system

Posted by Cynthia Leon, Policy Director, Workers' Compensation, Human Resources, Health & Safety on July 11, 2007

Forcing universal health care coverage without significant cost reductions will devastate the market for employers already insuring their employees and will result in even more decreases in job-based coverage. Today's report, by the UCLA Center for Health Policy Research, stated that, in California, there are less employees insured by their employers than five years ago. This shows us what happens when costs are too high -- employers drop benefits.

Employers already face huge healthcare and other costs in California, making them internationally and domestically uncompetitive. Healthcare coverage is one of the only costs an employer can drop all together. Comprehensive reform in California is crucial to accomodate the State's uninsured but any reform must show that it will lower system costs so employers can continue to provide premium coverage.

Manufacturers provide more health coverage than any other industry in the state. With sustained or heightened costs, workers stand to lose their job-based coverage and receive minimized health benefits. Gov. Arnold Schwarzenegger held a press conference hailing the report but committedg to lowering costs for "businesses that have experienced increases between 30 and 40 percent per year". California's manufacturers look forward to working with the Gov. and his administration on the reforms and reducing the costs of the system.

1 comments | Post your comment

Governor and economic adviser should push both private and public investment for growth

Posted by Greg Hines, Legislative Director, Tax & Corporate Counsel on July 9, 2007

In Marc Lifsher's Sunday LA Times piece, the "Governor's guide to the private sector", David Crane -- the Governor's Jobs and Economy adviser -- wants private investment to help pay for roads, railways and other infrastructure. Manufacturers also need capital investment to build the products of the 21st century, but don't have the luxury of looking for public investments. Instead, manufacturers depend on fair tax policies, regulations, a skilled workforce and a good business climate. Crane acknowledged his support for pro business policies such as "tax credits for buying equipment". An example of how California manufacturers are disadvantaged in this regard is the expiration of the manufacturing investment tax credit in 2004. We are now one of only three states that taxes manufacturing equipment. Crane and Gov. Schwarzenegger should work for a sales tax exemption on the purchase of manufacturing equipment (AB 1152 -- Roger Niello) to level the playing field, grow manufacturing, and keep more than 1.5 million workers employed.

0 comments | Post your comment