5 Reasons Universal Health Care is Good for Business
Universal health care would eliminate the cost of health insurance from company’s bottom line. This would have the following benefits:
- Having to negotiate and buy insurance for employees is a problem for business owners. It’s generally not a skill they are good at nor one that benefits their business directly. And they are at a disadvantage going up against insurance companies who often have a monopoly or close to it in their markets.
I had a client who had been an investment banker for UBS. He quit to start his own small company sourcing designer tableware. It was doing fairly well with 15 employees. He told me as an investment banker he was able to look at the numbers and evaluate if he should buy an insurance company or not. But when it came to buying health insurance from them for his employees, he could not figure out which offerings were a better deal. What’s wrong with that picture?
2. It puts small companies (where most job growth occurs) at a competitive disadvantage when competing for employees with large firms — a disadvantage that is not directly related to their business.
3. It puts US companies at a disadvantage when competing against companies from other countries where the cost of insurance is not a line item that affects their profit.
Universal health care would eliminate the financial burden of getting sick.
4. Illness is a major cause of bankruptcy in the US. Companies do better when their customers are not bankrupt.
Universal health care is not free. I know that. The costs are borne by everyone through taxes. The US system costs more per person and provides worse health outcomes than other countries with universal health care.
5. Many studies have shown, and evidence from Obamacare (as flawed as it is) corroborates that costs go down when more people are covered.
However the other countries of the world have adopted universal health care not for economic reasons, but for moral ones.