Companies Complain About Costs

A survey of 12,000 top-level benefit and human resource managers, owners, and CEOs of small to mid-size businesses conducted by Kaiser Permanente reports that if the financial hardship of providing health care coverage were to be rated on a medical pain scale from 1 to 10, with 10 being extreme pain, the average would be 7.7. If you think that's painful, consider the 20 percent of the managers who were surveyed who ranked their financial pain level at 10.

When they were asked about the impact of high health care costs on their company, the results were sobering:

  • 73 percent feel increases in health care costs have strongly or moderately reduced profit margins,
  • 63 percent feel increases in health care costs have strongly or moderately suppressed wage increases for existing employees,
  • 48 percent say these costs have reduced their capacity to expand the business, and
  • 44 percent strongly or somewhat agree that reductions in benefits have made it difficult to recruit new employees.

"The cost increases associated with preserving benefits are causing these businesses to miss growth opportunities and forcing their employees to forego salary increases and other benefits," says Tom Carter, vice president for sales at Kaiser Permanente. "That's something that we, as health care providers, must be aware of and work hard to reduce."

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to or online at

Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.