(The Center Square) – Wisconsin’s largest business group says the overwhelming majority of businesses in the state are suffering because of higher health care costs.
Wisconsin Manufacturers & Commerce recently released the results from its latest Employer Survey.
“High health care costs are hurting Wisconsin’s business climate and making employers less competitive. According to the Wisconsin Employer Survey, nearly half – 44% – of Badger State employers saw health care costs increase by more than 10 over the last year. Another 41% of businesses saw costs go up between 6% and 10%,” the survey reads. “These high costs come at a time when general inflation has increased by more than 20% over the last few years – making it harder for businesses to invest in their employees and equipment.”
WMC’s Rachel Ver Velde says more 50% of companies in the state say their health care costs are higher here than in other states.
“Wisconsin employers are at an extreme disadvantage when it comes to health care costs,” she said. “Instead of investing their limited resources into increased employee compensation or expansion of their companies, business leaders are having to pay for higher and higher prices for health care.”
Overall, 69% of businesses in Wisconsin say they’ve been affected by higher health care costs.
“Our employers are hurting, and there are policy solutions we know will work to make health care more affordable,” added Ver Velde. “We urge policymakers to strengthen Wisconsin hospital price transparency laws and enact a medical fee schedule. Both polices would improve our state’s economic competitiveness and help employers who are facing record-setting inflation.”
The survey adds that three-quarters of Wisconsin companies say higher health care costs have limited their profitability. Almost half said high health care prices have led to price increases for workers. WMC’s survey said 8% of companies have thought about expanding outside of Wisconsin, and another 3% have thought about leaving the state because of high health care costs.
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In fact, more businesses in Wisconsin say they’d rather see lower health care costs than lower taxes.
And over 90% of Wisconsin employers say they would support changes to Wisconsin’s health care costs under both workers’ comp reforms and employee health plans.