GM: Health care costs hurting U.S. competitiveness

Release Date: 6/04/2004

MACKINAC ISLAND - Rising health care costs are crippling the competitiveness of U.S. businesses and should be the top issue for the winner of November's presidential election, General Motors chairman and chief executive officer G. Richard Wagoner said today.

In a speech to the Detroit Regional Chamber’s Mackinac Policy Conference, Wagoner called on the next president to convene a bi-partisan group of business, political and health care leaders to develop a plan to contain spiraling costs.

Health care costs for business are increasing 14 to 18 percent annually, he said. Last year GM spent $4.8 billion on the benefits for its 1.1 million employees and retirees. Health care accounts for $1,400 per vehicle as part of negotiated labor contracts. And still, he said, the United States ranks 12th out of 13 industrialized nations in 16 of the top health indicators, such as infant mortality and obesity.

“Our foreign competitors operating in the U.S. have just a fraction of these costs, because they have few, if any U.S. retirees,’’ he said.

Wagoner didn’t offer a solution to the problem and didn’t advocate a national health care plan. He took note of the poor reception the nation had in the early 1990s when former First Lady Hillary Clinton tried to lead an effort for national health care.

“That’s exactly the kind of start that gets the issue in trouble,’’ he said. “But everyone has to drop down and give up their heartfelt issues.’’

While GM is prepared to get involved in working on the issue, Wagoner said he knows it won’t be easy.

Other issues of business competitiveness aren't as daunting, he said, such as changing laws to stem the rising tide of multi-million dollar lawsuit settlements. Health care costs are the top concern of large and small businesses.

“It is well beyond time for all of us to put partisan politics behind us, and get together to address this health care crisis.’’