2007-2008 Issues

SECURE SIGNIFICANT HEALTH CARE REFORM

The Wisconsin Alliance of Cities implores the governor and Legislature to enact the most comprehensive health care reform achievable, consistent with extending quality, economical health care to the greatest number of citizens possible.

Employer-provided health insurance in the United States is breaking down, and we are close to the point where neither workers nor employers in the public or private sectors can afford the cost of health insurance.

Health-care costs also are the biggest single factor driving up property taxes in Wisconsin.

Public and private employers in Wisconsin spend an average of 15% of payroll for the health care premiums of their employees. Health care costs are rising 10-25% per year, and the result is an adverse economic effect on wages, profits, job creation, and new investment in Wisconsin.

It’s a situation that makes Wisconsin less competitive. A survey found that Wisconsin’s public and private employers pay an estimated 26.5% more to provide their employees with health benefits than the average employer nationwide. In addition, the benefits that are extended to employees are becoming less inclusive. And despite that, costs are rising faster than the national average.

The phenomenon adds to the cost of doing business — and the cost of doing government — in Wisconsin.
 

There are potential remedies: The Wisconsin Health Care Partnership Plan, (2005 SB 698) patterned after the state’s workers compensation and unemployment compensation programs, would offer standardized, comprehensive health insurance to all employed persons in the state. The Wisconsin Health Care Plan (2005 AB 1140) would create a health-care purchasing pool and offer residents under age 65 premium credits toward the purchase of qualifying private health plans. Adults also would receive a $500 a year deposit in a health savings account.

• The Wisconsin Health Security Act (2005 SB 388 and AB 807), a publicly financed plan to provide quality health care to all Wisconsin residents and eliminate waste, duplication and red tape in administration.

• The governor has announced his intention to set up a state "reinsurance" program to spread out the risk of catastrophic health care costs in an effort to lower premiums for small businesses and individuals.

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