Rising health care costs are one of the biggest challenges manfuacturers and their employees face according to a recent report from the National Assocation of Manufacturers (NAM) (www.nam.org).
According to the survey of small and medium manufacturers, 87 percent of respondents ranked escalating health care costs as their most pressing problem. Further, more than 10 percent of small and medium manufacturers surveyed spent an average of 27 percent of sales on health care expenses.
As a result of rising costs, 69 percent of those surveyed said they had to raise their employees’ share of coverage while 28 percent said they would begin or increase Health Savings Accounts (HSA).
According to NAM’s report, “the United States tops other countries in terms of health care spending as a percent of GDP. While the U.S. has advanced technology and medical services, escalating spending is taking a toll on employers. The answer to the rising cost of health coverage lies in an aggressive two-track strategy of reducing health care costs today while experimenting with changes or alternatives to our present health care system.”