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Minnesota, Wisconsin businesses say healthcare is greatest obstacle to expansion

By Chelsey Ledue

In a survey of 178 companies in Minnesota and western Wisconsin, employers identified affordable healthcare as the greatest obstacle to business expansion.

The survey, conducted on behalf of HealthPartners by independent research firm CJ Olson Market Research, showed that nearly three out of four businesses said poor health habits of employees and their families are a significant healthcare cost driver.

“Health improvement presents an opportunity for significant cost savings because unhealthy lifestyle choices raise healthcare costs by at least 25 percent and perhaps as much as 50 percent,” said Andrea Walsh, executive vice-president and chief marketing officer of Minneapolis-based HealthPartners.

Being tobacco free, exercising, eating a healthy diet and maintaining a healthy weight are keys to more affordable healthcare long-term, she said.

While more than 60 percent of employers surveyed reported healthcare cost increases of 10 percent or more between 2007 and 2009, nearly 20 percent of employers reported cost increases of less than 5 percent compared to the national average of nearly 11 percent.

Other barriers to growth were government regulations, weak investment markets and taxes.

Other key findings:

  • 60 percent of employers say they have increased or will increase employees’ share of costs;
  • One in four employers offers or plans to offer only a high-deductible plan;
  • Among companies with lower cost increases, common practices include programs to support health improvement, emotional health and health assessments.

The survey includes a range of companies, from those with 50 or fewer employees to those with 1,000 or more employees.