Large Corporations' Reluctance to Endorse Employer Mandates in Health Care Reform

Strategic Insights -

In the health care reform debate, the idea of making all employers share the cost of paying for workers' health insurance has become the most contentious element. Despite being among the strongest supporters of the Clinton-style health reform plan, large corporations have been hesitant to endorse the employer mandate provision. This reluctance stems from concerns about increased costs, bureaucratic nightmares, and philosophical opposition to government regulation. As a result, a powerful coalition of businesses, including companies like PepsiCo and the National Restaurant Association, has emerged to defeat mandates.

Key Takeaways:

  • Almost two-thirds of all American workers and their dependents receive health insurance benefits through the workplace, with most of the tab being picked up by big business.
  • Many small businesses have shrugged off health coverage for their employees, leaving large corporations to bear the burden of health care costs for the uninsured.
  • Big businesses complain that the burden of health care costs is making them uncompetitive in the global marketplace, with $1,100 of the price of an American car going towards workers' health benefits.
  • Large companies may have small businesses that don't insure their workers as their clients, leading to concerns about losing business and damaging relationships.
  • The National Restaurant Association has been working to defeat mandates, with a $1 million budget for anti-employer mandate campaigning.
  • Companies like PepsiCo and the National Restaurant Association have launched campaigns like "Bite Back," which has resonated with some businesses and individuals.
  • Small business groups like the National Federation of Independent Business have also conducted massive direct mail pleas to their members against employer mandates.
  • The combination of single-minded political pressure and large companies' lukewarm endorsement of mandates has made employer mandates extremely vulnerable.

Statistics:

  • Almost two-thirds (66%) of all American workers and their dependents receive health insurance benefits through the workplace. (Source: CHITRA RAGAVAN" IdRef="2)
  • $1,100 of the price of an American car goes towards workers' health benefits. (Source: DEBORAH SHALET" IdRef="3)
  • The National Restaurant Association has spent $1 million in the last six months alone on its anti-employer mandate campaign. (Source: ELAINE GRAHAM" IdRef="6)
  • The "Bite Back" campaign has a toll-free number that was operational during the week of July 25, 1994. (Source: RECORDED TAPE FROM `BITE BACK' TOLL-FREE NUMBER HERMAN CAIN" IdRef="7)

Sources:

  • CHITRA RAGAVAN" IdRef="2
  • DEBORAH SHALET" IdRef="3
  • KRISTEN BASS" IdRef="4
  • MARGARET JORDAN" IdRef="5
  • ELAINE GRAHAM" IdRef="6
  • RECORDED TAPE FROM `BITE BACK' TOLL-FREE NUMBER HERMAN CAIN" IdRef="7