Employer Benefits Costs

Currently, the total cost of employee benefits (health, welfare and employer taxes) represents nearly 44% of total payroll. Obviously, action needs to be taken to alleviate this tremendous burden on employers. Is Universal Health Care the magic bullet? In my opinion, Universal care would substantially increase payroll taxes to both employer and employee (some estimate 26% or more) and compromise the quality and accessibility of healthcare because free enterprise would be removed from the equation. Do you want the same government that runs the VA Medical Centers and the new Medicare drug program to also be responsible for your personal health care?

In my opinion, we have to admit to three realities: 1) we did not get into this situation overnight, so it will take a long-term solution to change the system; 2) our current societal lifestyles must be changed for the better, e.g., eat less, move more, quit smoking and stop the notion that a pill can cure all of our physical and behavioral problems; and 3) employers' premium contributions play an intergral role in keeping health insurance premiums affordable for working families.

Yes, whatever the ultimate solution may be, it must start with us - all of us. Changing the way we use healthcare services, engaging our providers in dialogue, and shopping smartly for services and maintenance drugs are ways we can initiate a trend to lower costs. In addition, employers should be allowed tax credits, not just deductions, for sponsoring healthcare plans for their employees. Then and only then will we see a stabilization of health insurance rates, of which the largest percentage is typically borne by the nation's employers.

Your thoughts?