Two state unions are fixing to go on strike, and the main reason for it is expensive health-care coverage.

Thursday, September 06, 2001

Two state unions are fixing to go on strike, and the main reason for it is expensive health-care coverage. As if there were any doubt about the high cost of health insurance, a report this week said Minnesotans have seen a 16 percent increase in costs over the last year.

It’s clear that if something is not done to keep health-care costs under control, the trend will continue to strangle pay increases for average workers and cause bargaining problems between employers and unions.

One of the major reasons cited for the increases in health-insurance costs was the high price of prescription drugs, something politicians in Washington are already talking about. Importing less expensive drugs from other countries is a sensible way to provide cheaper prescription medicine and force domestic pharmaceutical companies to keep their prices down.

Overuse of health plans can be another reason costs go up. Unfortunately, most insured people have no incentive to limit their use of health care. It makes sense for companies to provide that incentive, perhaps by offering cheaper rates to companies who don’t use the insurance as often. Other forms of insurance reward enrollees if they don’t use it often; why not health insurance?

With the economy already slumping, a problem like rising insurance costs threatens to make matters even worse by taking the edge off pay increases and costing employers more money. Something has got to change.