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Wednesday, January 20, 2010

From 'sorry, we're closed' to 'yes, we're open'

Although the economy is slowly recovering, American businesses are still under financial stress. The tight times are causing many firms to let go of workers to cut operating costs-and the nation's unemployment remains at 10%.

Health care costs are the main  driver of financial stress for business, but thankfully, health reform can help ease these burdens.

According to a report by Third Way,  

Over the next 15 years, American businesses would collectively spend $637 billion less on their share of health insurance premiums, and their workers would save a collective $177 billion under the Senate bill.

The report also showed that on an individual basis, health reform will slow the rate of cost increases for businesses. According to the report,

For a typical business with 500 employees, the cost of coverage would be $2.5 million less than it would be otherwise over 15 years. In other words, these reforms will slow the annual growth rate of costs for job-based health care coverage over the next decade and a half from a projected increase of 5.8% to 5.0% per person.

Reform will help not only the employer but the also the employee. According to Third Way,

For American businesses, these savings will translate directly into higher wages for workers, more money to expand and invest, and a greater ability to succeed in a fiercely competitive global marketplace. For workers, these savings will lead to coverage that is more stable and more secure.

Not only is health reform good for the health of all Americans, but it is also a shot in the arm to American businesses.