Small Business Voice E-newsletter

March 2007

HEALTH-CARE SYSTEM SHOULD OPERATE AS A FREE MARKET
By: Tom Forsythe, vice president of corporate communications, General Mills, Minnesota Chamber Board chair, 2006-2007

The question was simple. How can we reform health care to help all Minnesotans?

The answer divided our group.

Some decided we need to mandate that all Minnesotans must buy health insurance. The Minnesota Medical Association's Healthy Minnesota proposal made a splash at the Capitol and in the media. Requiring all Minnesotans to have health insurance will "keep people healthier, give better care and spend our health-care dollars more wisely," they said.

We disagree.

The problem, in our view, is not that Minnesotans are unwilling to buy health insurance -- and must be forced to do so. The problem is that health care costs too much -- and increasingly Minnesotans can't afford it.

For months, I have been a member of the Healthy Minnesota Steering Committee representing the Minnesota Chamber of Commerce. The process brought together diverse stakeholders for tremendous discussions. We all shared the goal of working to reform our ailing health-care system.

But in the push to "bring a package to the Legislature," we failed to address the most difficult issue in the health-care debate: skyrocketing costs.

Employers cover the lion's share of Minnesotans and pay, on average, 80 percent of health-care premiums for their employees. When employers look at health care, we see a market that is broken. It won't be easy to fix, but we have to try. Some would turn the whole thing over to the government. We wouldn't. That's not likely to improve health care in America.

Some want more money. Some want more access and more coverage. The individual mandate is one type of "more money" proposal. But our health-care system has demonstrated it can absorb all the money we can throw at it -- while maintaining its insatiable appetite. If the problem is that people already can't afford it, making everyone buy it is really not much of a solution.

With 93 percent of Minnesotans covered by some form of health insurance, Minnesota leads the nation in providing access. Programs like MinnesotaCare have been a national model, and we can be justifiably proud of having one of the lowest rates of uninsured in the nation.

For that remaining 7 percent, however, it's a problem -- and the cost is the biggest barrier. Health insurance is expensive because health care is expensive. Requiring that uninsured Minnesotans must purchase insurance does nothing to change that equation. Until we tackle the real issue, we will continue to struggle with health-care cost increases that undermine our ability to ensure access.

If we are going to actually reform health care, we clearly have to get after it.

The best option, as we see it, is to try to make our health-care system actually function as a market. We need to empower and engage consumers. We need transparency and accountability -- with transparent, comparable prices and clear, objective measures of quality to help consumers determine value in a functioning marketplace. We need to redefine how health care is delivered and set standards that allow more Minnesotans to buy coverage. We need to redefine the role of health insurance and realign incentives to move all stakeholders toward a more efficient, productive and competitive marketplace.

The Minnesota Chamber will continue to work with all partners to help set that course. We may not like the choices we face as stakeholders in the health-care debate, but we strongly recommend that we begin the difficult discussions now.

HEALTH CARE EXCHANGE: A BETTER IDEA
The Health Care Exchange, a concept at the foundation of Governor Tim Pawlenty’s health care initiatives, offers promise for bringing some cost controls to the system. Although we believe more work needs to be done on this provision, the proposed Health Insurance Exchange could represent significant savings for individuals purchasing health insurance while at the same time allowing individual employees to choose plans that fit their needs.

This concept provides an opportunity for small employers who are currently not offering health care benefits or who are struggling to continue this employee benefit. We look forward to working with all stakeholders to make sure that, if we establish this new entity, it will help make health insurance more affordable and create ease, efficiency and options in the individual market.

Please contact your legislators and ask them to focus their attention on affordable options in the private marketplace versus putting more individuals on state-sponsored programs or mandating coverage for all Minnesotans.

ADVANCING YOUR INTERESTS
The Minnesota Chamber is an advocate for all businesses, and companies with fewer than 100 employees are at the forefront of our initiatives. Those employers represent about 83 percent of our 2,400 members.

Our Small Business Policy Committee forwards recommendations to the various policy committees and reviews all policy recommendations for their impact on small companies. The Small Business Policy Committee meets the second Monday of each month. To become involved, contact Stacia Smith, manager of the Small Business Policy Committee, at (651) 292-4692 or ssmith@mnchamber.com.

This web site is developed and owned by the Minnesota Chamber of Commerce. Any use or reprinting is strictly prohibited without prior consent of the Minnesota Chamber of Commerce.

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