Bureau of National Affairs

Len Nichols and Elizabeth Carpenter in BNA | 'Report Says Health Costs Hamper U.S. Firms'

Communications — Wed, 07 May 2008 07:46:00 -0400

New America in the News:

Employer health costs put U.S. firms at a competitive disadvantage compared with certain trading partners, highlighting the need to separate health coverage from employer financing, according to a report scheduled for release May 7.

The report by the New America Foundation found that, while U.S. manufacturers pay $2.38 per hour for health benefits, five of the country's major trading partners pay an average of $0.96 per hour. The report looked at health care costs in Canada, France, Germany, Japan, and the United Kingdom compared with the United States.

The results do not indicate that U.S. firms are not competitive overall, but it does mean that "all else being equal, employer health costs make the United States less competitive than it could otherwise be," according to Employer Health Costs in a Global Economy: A Competitive Disadvantage for U.S. Firms.

U.S. business leaders are aware of the effects high health costs are having on them, Len Nichols, director of the Health Policy Program at the New America Foundation and lead author of the report, said. Knowing that they cannot remain competitive if they shift costs to workers or raise prices, they are increasingly pushing major reform efforts. . .

Additional changes are needed, though, to improve outcomes and curb costs, Nichols said. Those changes include market reforms to ensure all people have access to health insurance, as well as improvements in the health care delivery system through comparative effectiveness research, consistent use of best practices, and information technology.

Ending employer-based financing must be accompanied by an improved delivery system because compared to foreign companies, U.S. firms are "still paying a bigger chunk of a bloated bill," Nichols said.

The market reforms would include plans for guaranteed issuance, as well as subsidies to ensure that all those seeking insurance can pay for it, according to Elizabeth Carpenter, a senior program associate for the health policy program.

The New America Foundation describes itself as "a nonprofit public policy institute that was established through the collaborative work of a diverse group of public intellectuals, civic leaders and business executives."

Link to the report:
http://www.newamerica.net/publications/policy/employer_health_costs_global_economy

Len Nichols in BNA News | Poor Health, Shorter Lives of Uninsured Costlier Than Providing Coverage, Study Says

Communications — Thu, 27 Mar 2008 12:07:00 -0400

New America in the News:

BNA News | Poor Health, Shorter Lives of Uninsured Costlier Than Providing Coverage, Study Says

The economic costs caused by the uninsured are at least as great as the public cost of providing coverage, according to a report released March 26 by the New America Foundation.

The report, Cost of Failure: The Economic Losses of the Uninsured, found that the poor health and shorter life spans of the uninsured cost the United States between $102 billion and $204 billion in 2006.

"Some might argue that given the sudden economic downturn, we cannot afford health reform. To the contrary: these numbers only further emphasize that the cost of doing nothing is more than the cost of health reform," Len Nichols, director of the New America Foundation's health policy program, said in a statement.

The New America Foundation is a nonprofit, public policy institute headquartered in Washington, according to its Web site.

Sarah Axeen and Elizabeth Carpenter of the Health Policy Program authored the report, which is based on a study done in 2000 by the Institute of Medicine.

The IOM study estimated that the economic costs of those who lack insurance cost was between $65 billion and $130 billion for "each year of health insurance forgone." The estimate considered economic losses because of premature mortality and unnecessary prolonged illness, according to the report. . .

The New America Foundation said in a press release that the higher estimate is likely more accurate because "the uninsured die sooner and remain sicker longer than the insured."

They added that the cost estimates would have been higher had they included "spillover costs" such as increased provider rates and insurance premiums that may result when medical bills go unpaid.

"This vicious cycle of "cost shifting" inextricably links the uninsured to rising health care costs and premium rates for the uninsured," the report said.

The report is available at http://www.newamerica.net/publications/policy/cost_failure.

BNA Spotlights Economic Growth Conference

Communications — Wed, 01 Nov 2006 02:10:00 -0500

New America in the News:

If the U.S. economy falls into recession, or avoids it but has an extended period of very slow growth, it will be tougher to fight off protectionist policies that will hurt the economy in the long run, analysts said Oct. 30.

This was one concern voiced at a conference on U.S. growth challenges sponsored by the New America Foundation, a Washington think tank. There was also general agreement on those challenges including the immediate ramifications of the housing slump, the trade and budget deficits, slow wage growth, the negative personal savings rate, and the need to invest in research, education and infrastructure to remain competitive in the global economy. Despite general agreement on the challenges facing the economy, there is ample argument about whether the outlook is pessimistic or optimistic....

The New America Foundation also released its own report, Realizing America's Economic Potential: A Growth Agenda for the New Abundant Economy, which makes the case that the U.S. economy can grow faster and calls for expanded public spending on infrastructure to strengthen the productive economy, efforts to promote new energy development and efficiency, a strategy to promote “on-shoring” investment, particularly in manufacturing, steps to improve the efficiency of health care and education, and a “pro-growth” wage and asset-based incomes policy.

For the complete article, please see the BNA website (subcription required).