Board of Economists: Business, Heal Thyself

(5 of 5)

WILENSKY: The answer is yes, but that's O.K. Large employers are likely to offer health insurance because it is regarded as a benefit. What we want to do is allow for the existing system to continue but recognize that lots of small entrepreneurs, lots of individuals, are not going to get employer-sponsored insurance.

TIME: So where will the pressure come for the small businesses?

WILENSKY: Are you sure that's where you want the pressure? These are people who, if they're not providing health insurance, are giving higher wages to their employees.

DARLING: Some of the smaller firms got bigger hits in the past couple of years. I know last year in this country an awful lot of small employers were seeing 28%, 35%, 40% increases in health-care costs.

ALTMAN: Small employers are the most screwed. That's the plainest English I could make it.

DARLING: I had one very small manufacturing company in the Midwest tell me that the difference between its projected retiree medical liability for 2003 over 2002 was $32 million. How many widgets--or whatever it makes--is it going to have to sell to make up that difference?