Monday
Aug242009
High Health Care Costs May Impede Employment, Says RAND Economist
The rising costs of health care may be significantly impeding the growth of several industries’ workforces, according to Dr. Neeraj Sood, the Senior Economist for the RAND Corporation.
“Industries with a higher percentage of workers with employer sponsored insurance are hardest hit by rising health care costs,” Sood said during a briefing Monday, citing a report recently compiled through RAND Health.
The report states that during 1987 and 2005, when health care costs spiked, industries that typically provide insurance for their employees, such as construction and hotels, saw their workforces grow slowly or in some cases contract. In contrast, workforces for industries that do not provide health insurance, such as retail and theme parks, have risen at a much faster rate.
Sood noted that this pattern did not exist in Canada, where insurance is provided by the government.
“I think what this establishes is that there is a need for health care reform...the status quo is hurting the economic performance of U.S. industries,” Sood said.
“Industries with a higher percentage of workers with employer sponsored insurance are hardest hit by rising health care costs,” Sood said during a briefing Monday, citing a report recently compiled through RAND Health.
The report states that during 1987 and 2005, when health care costs spiked, industries that typically provide insurance for their employees, such as construction and hotels, saw their workforces grow slowly or in some cases contract. In contrast, workforces for industries that do not provide health insurance, such as retail and theme parks, have risen at a much faster rate.
Sood noted that this pattern did not exist in Canada, where insurance is provided by the government.
“I think what this establishes is that there is a need for health care reform...the status quo is hurting the economic performance of U.S. industries,” Sood said.
tagged Health Care, RAND, sood in Frontpage 1, News/Commentary
With BP Spill Behind Him, Thad Allen Finally Retires
Retired Coast Guard Adm. Thad Allen announced Friday that he is stepping down from his role as the Obama administration’s point man on the effort to control the BP oil spill.
Allen said in a statement that although the “National Incident Command is disestablished…our commitment to this response and the people of the Gulf of Mexico remains.” Allen will join RAND next week, conducting research for the think tank’s Center on Homeland Security.
A decorated veteran of the Coast Guard, Allen served for 39 years before announcing his retirement at the outset of this year. However, days after the Deepwater Horizon Macando well exploded in the Gulf of Mexico on April 20th, killing 11 workers, Allen was called on by Obama to lead the effort to plug the blown-out well.
Allen worked tirelessly throughout the summer with BP and other federal officials to cap the well, which leaked a total of nearly 4 million barrels of crude oil into the Gulf. After weeks of failure, engineers were able to cement the well in August. On September 19, BP announced that it had completed a relief well, effectively ending the potential for any more oil to leak out.
In a statement Friday, Obama thanked Allen for putting off his retirement to deal with the spill.
“At a time when he could have enjoyed a well-deserved retirement from the United States Coast Guard, Admiral Allen stepped up to the plate and served his country when his skills and experience were urgently needed,” the president said. “This unprecedented response effort simply could not have succeeded without Admiral Allen at the helm, and the nation owes him a debt of gratitude.”
Because of its large and prolonged impact, the spill is considered to be the worst environmental disaster ever to occur in the U.S., and served as a catalyst to cripple the Gulf region’s economy, destroy fish and other wildlife and create a cloud of anger and frustration that blanketed the nation all summer long.