Health Savings Accounts are helping reduce medical costs in South Africa.
A strong majority of U.S executives rate healthcare insurance costs as their No. 1 concern. The poster company for this problem might be GM, which announced on June 7th that it will layoff at least 25,000 jobs or almost 8% of its U.S. workforce. In a renewed effort to cut costs, it will focus on its $5.6 billion annual healthcare bill that averages over $1500 per car. “Intense” discussions have begun on health insurance with GM union leaders.
Conditions are also painful at the small-business-end of the corporate spectrum. There are perhaps as many as 45 million U.S. citizens who don't have any healthcare insurance, largely because more than 50% of small business owners can't afford to offer any health insurance to their employees. And at many other small firms, the insurance that is offered is too expensive for many employees to subscribe to. As health insurance costs have risen - on average 12.5% per year from 1997 with no forecasted relief in sight - there are two clear patterns that have emerged: