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May 27. 2012 1:00AM
Health care a top issue for businesses in New Hampshire
Health care tops the concerns of New Hampshire businesses and influences whether some businesses locate here, according a state business group.
More than three of five businesses surveyed last October cited health care as a top concern, the highest of any issue, according to David Juvet, senior vice president of the Business and Industry Association of New Hampshire.
Group President Jim Roche said health care costs are becoming “an increasingly important factor in business relocation and expansion” in New Hampshire.
“From a competitive perspective, we have some of the highest health care costs in the country,” he said.
New Hampshire in 2010 had the highest annual premium cost for family-size plan among the 50 states, at $15,204 — $1,333 higher than the national average. Only the District of Columbia was higher, by $2, according to the Kaiser Family Foundation, a nonprofit foundation focusing on major health care issues.
Steven Sherkanowski, chief operating officer at Akumina, a Web development company, valued health care during recruitment.
“To get folks interested in coming along on board, one of the things was making sure we had a competitive health care package,” Sherkanowski said.
The Nashua business employs 12 people full time and expects to hire four more full-timers by year’s end.
“As I bring younger people on board, it brings my premiums down,” he said.
Officials at Anthem Blue Cross and Blue Shield in New Hampshire, where Akumina has its policy, said age is a factor, though, not the sole one, in determining premium costs.
Hollis McGuire, who works with businesses at the New Hampshire Small Business Development Center, said many of the state’s smallest companies, namely those with fewer than five employees, have never been able to offer health insurance because of cost, and not just in the last few years.
“The companies that fall into this category generally operate on small margins, and there are many NH businesses in this category, including some in retail, food services, hospitality, and non-professional service businesses,” he said in an email.
Some other businesses have had to reduce coverage, even before the recent economic downturn, he said.
“A major issue for all businesses is small-business insurance policies are affected not only by who is covered (single person vs. family coverage differences are significant) but the age of the employee covered,” McGuire said. “An older employee population will have a much more costly policy than a young employee population.”
Roche said businesses during the recession “were having to make very hard decisions about laying people off, not filling positions” while putting health insurance costs “under a spotlight.”
“I have not read or seen anything that this problem is going to go away anytime soon,” Roche said. “There’s some indications they might only get worse by actions at the state and federal level.”
In its current two-year budget, which began July 1, 2011, the state Legislature cut $258 million in payments to hospitals in reimbursement payments for Medicaid patients and uncompensated care.
“We can’t just step in and make up that gap,” said Lisa Guertin, president of Anthem Blue Cross and Blue Shield in New Hampshire. “Considering we have the highest premiums in the state, that’s not a viable alternative.”
The New Hampshire Center for Public Policy Studies in Concord calculated that private health insurers paid the state’s 26 health care systems — hospitals and their associated businesses, such as physician practices — $800 million more than the actual cost of services in 2009.
The New Hampshire Insurance Department plans to release a report on the subject next month.
Steve Ahnen, president of the New Hampshire Hospital Association, said hospitals and their related businesses have laid off more than 1,200 workers since last summer.
“There will continue to be attempts to make up for losses of those Medicaid dollars,” Ahnen said. That will include trying to raise rates for services it charges private insurers.
More than three of five businesses surveyed last October cited health care as a top concern, the highest of any issue, according to David Juvet, senior vice president of the Business and Industry Association of New Hampshire.
Group President Jim Roche said health care costs are becoming “an increasingly important factor in business relocation and expansion” in New Hampshire.
“From a competitive perspective, we have some of the highest health care costs in the country,” he said.
New Hampshire in 2010 had the highest annual premium cost for family-size plan among the 50 states, at $15,204 — $1,333 higher than the national average. Only the District of Columbia was higher, by $2, according to the Kaiser Family Foundation, a nonprofit foundation focusing on major health care issues.
Steven Sherkanowski, chief operating officer at Akumina, a Web development company, valued health care during recruitment.
“To get folks interested in coming along on board, one of the things was making sure we had a competitive health care package,” Sherkanowski said.
The Nashua business employs 12 people full time and expects to hire four more full-timers by year’s end.
“As I bring younger people on board, it brings my premiums down,” he said.
Officials at Anthem Blue Cross and Blue Shield in New Hampshire, where Akumina has its policy, said age is a factor, though, not the sole one, in determining premium costs.
Hollis McGuire, who works with businesses at the New Hampshire Small Business Development Center, said many of the state’s smallest companies, namely those with fewer than five employees, have never been able to offer health insurance because of cost, and not just in the last few years.
“The companies that fall into this category generally operate on small margins, and there are many NH businesses in this category, including some in retail, food services, hospitality, and non-professional service businesses,” he said in an email.
Some other businesses have had to reduce coverage, even before the recent economic downturn, he said.
“A major issue for all businesses is small-business insurance policies are affected not only by who is covered (single person vs. family coverage differences are significant) but the age of the employee covered,” McGuire said. “An older employee population will have a much more costly policy than a young employee population.”
Roche said businesses during the recession “were having to make very hard decisions about laying people off, not filling positions” while putting health insurance costs “under a spotlight.”
“I have not read or seen anything that this problem is going to go away anytime soon,” Roche said. “There’s some indications they might only get worse by actions at the state and federal level.”
In its current two-year budget, which began July 1, 2011, the state Legislature cut $258 million in payments to hospitals in reimbursement payments for Medicaid patients and uncompensated care.
“We can’t just step in and make up that gap,” said Lisa Guertin, president of Anthem Blue Cross and Blue Shield in New Hampshire. “Considering we have the highest premiums in the state, that’s not a viable alternative.”
The New Hampshire Center for Public Policy Studies in Concord calculated that private health insurers paid the state’s 26 health care systems — hospitals and their associated businesses, such as physician practices — $800 million more than the actual cost of services in 2009.
The New Hampshire Insurance Department plans to release a report on the subject next month.
Steve Ahnen, president of the New Hampshire Hospital Association, said hospitals and their related businesses have laid off more than 1,200 workers since last summer.
“There will continue to be attempts to make up for losses of those Medicaid dollars,” Ahnen said. That will include trying to raise rates for services it charges private insurers.