Health Care & Prescription Drugs In the News

Spiraling healthcare costs are hurting small businesses in New Jersey, says a report released recently by New Jersey Public Interest Research Group, a consumer association.

The report found that small business owners across the state were grappling with unaffordable policies, insurance company abuses and bureaucracy. It argues that owners of small businesses, such as Paul Nippes of Montclair toy store Just Kidding Around, need health care reform.

"Health care right now is such a problem that if I tried to run my business they way they run theirs, I'd lose all of my customers," Nippes said.

In an event releasing the report, Nippes used his own toy store to demonstrate leading health care problems:

-While big businesses can get a good price for coverage, small businesses and individuals pay 18% or more for the exact same policy. For Nippes' toy store, that would be like selling toys to large families at affordable prices, but selling the same toys to families with one or two children at higher prices.

-In the health care system, premiums have doubled over the last ten years, and they're set to double again over the next eight. If Nippes' prices had been going up like health care costs over the last decade, a simple teddy bear would cost close to $100 today. And customers would be shelling out over $175 by 2016.

The NJPIRG's Program Associate Rebecca Alper, concludes that "lack of competition and skewed incentives have turned our health care system into a nightmare. It's time for Congress to pass strong reforms, including a public health insurance option, to lower costs and rein in these insurers."

Indeed, higher healthcare costs are also trapping many in jobs that no longer inspire them, limiting mobility and innovation in the US, the world's biggest economy, in general.