Corporate Attitudes toward Health Care Costs

Abstract

WITH THE GOVERNMENT STRAINING TO MEET its health benefit obligations to the poor and the elderly, it is not surprising that some policy analysts see the development of an alliance between business and government as the only effective means to control inflation in the health sector. Most Americans receive health benefits from their employers rather than from government (Carroll and Arnett, 1979). Rising health care costs, however, affect all purchasers of health care services. Government action alone has been unable to limit the growth in these costs. An aroused business community could make the difference if it added its purchasing power to that of government in an effort to discipline the utilization and pricing of health care services. Businesses are certainly important purchasers of health care services, buying annually tens of billions of dollars worth of care on behalf of their employees. Many observers believe that firms, because of these expenditures, are a potential force for health sector reform (Council on Wage and Price Stability, 1976; Havighurst, 1978; Altman, 1978). The view they offer is that firms, especially the largest, are concerned about increases in health care costs; are seeking to improve