The focus of healthcare stories these days is on the action (or inaction, depending on your viewpoint) in Washington and Congress. Yet the challenges companies face as the actually try to provide health care plan benefits to their employees is an issue that, in many ways, has been "under-reported" by those of us in the media. So that's what we were trying to focus on in tonight's Bill of Health. This report is the first of a 3-part series developed by photographer/editor Michael Malanga and myself.
Our idea was to focus on one company, preferably a small one (only a slim majority of companies with 9 workers or less still offer health benefits at all, compared to 99 percent of corporations with 200 or more workers), and to tell THAT company's health-insurance story. We wound up being put in touch with Kathy and Bob Latham, the owners of Latham Marine, in Fort Lauderdale, Florida.
Their story is one that is familiar to any small-business owner in the nation. Rising health care costs are forcing workers and owners alike to adjust. For years, the Lathams paid for generous health coverage, not just for their dozen or so machinists, engineers and sales people, but for the families of employees as well. The rising cost of the benefit packages -- and the impact of the slowing economy on their business -- forced Latham Marine to cut back recently. Employees still receive fully-paid coverage, but the Lathams could no longer afford to cover their families.
It was an interesting story to report because the owners recognize the value of health benefits as a recruiting tool for attracting new employees and as a powerful incentive for experienced workers to stay on the payroll. As Kathy Latham told us in our interview, health coverage for families means a more satisfied, happier workforce. So, when benefits are trimmed back, the managerial skills of the owners (and the loyalty and demeanor of existing employees) are put to a harsher test -- a test more and more companies must deal with as insurance costs continue to grow.
Jeff's 3-part series for "Bill of Health" is also part of the lead up to the PBS Special Report on Health Care Reform, which will air Thursday, September 24th at 9 PM on PBS stations across the nation. Tune in!
Comments
Company cars are also a powerful incentive. If a small company like Latham Marina provided employees with a company owned or leased car, and the company filed a number of accident claims, or maybe one big one, the insurance company would raise their rates. The company would then either pay the increased rates, make the employees pay a portion of the insurance or stop providing company owned or leased cars. Do we blame the insurance carrier for raising rates? No... it's accepted as one of the fiscal perils of a small company.
But when large health claim experience results in a premium increase, we blame the carrier. Really...what's the difference?
Was the reason Latham Marine eliminated employees' dependent coverage the increased cost of their health coverage or was it because company revenues were down? If it were the latter, maybe the decision was to cut back on health coverage rather than layoffs. If it were the former, it was probably because of high claims experience---and in a small group one large claim can significantly affect experience.
Did Latham Marine not offer the dependents COBRA coverage? The law doesn't require employers of a certain size to offer COBRA but that doesn't preclude the employer from offering it. The gentleman who said his wife had no coverage should have been able to be covered through COBRA at a single rate. It maybe be a little expensive but it's probably better than no insurance.
As with just about every story about someone's problems with the current health care system, your story starts and stops with the "high cost of healthcare." Maybe if someone dug a little deeper they'd find that a number of these problems are isolated to a particular company or individual and are not a problem with the health care system.