Health care costs plague distributors
Staff -- Industrial Distribution, 4/1/2005
Distributors who took part in a recent INDUSTRIAL DISTRIBUTION online survey say rising health care costs are an ongoing concern for their companies. One-hundred percent of respondents answered "yes" when asked that question, bolstering claims by many business leaders that the U.S. health care system is in need of reform.
When asked what steps they are taking to control health care costs, 35 percent of respondents said they increased their employees' share of contribution; 25 percent said they switched plans; 37 percent said they reduced coverage or benefits; and just 3 percent said they eliminated health coverage altogether. The majority of respondents said their companies pay 25 percent to 50 percent of employees' health care costs.
All in all, distributors are not confident that political leaders will take steps to solve the health care problem any time soon, despite campaign promises by many recently elected officials. Eighty-seven percent of respondents said they expect no action on health care reform in the next two years.
In addition, most respondents blamed insurance companies (25 percent) and lawyers (25 percent) for the state of the health care system. Twelve percent blamed government leaders for the problem; 8 percent blamed doctors; and 30 percent blamed "all of the above."














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