MERI statewide survey of Maine business leaders:

Business Leaders Weigh in on Healthcare Cost Issues

 

AUGUSTA, Maine—The Maine Economic Research Institute (MERI) recently released the results of the statewide 2005 Senior Management Survey (SMS), Maine’s premier survey of 531 Maine employers. The scientific survey presents a candid analysis of Maine’s economy from the people who know it best—business owners, CEOs, Presidents, and senior managers.  Maine employers—small, medium, and large—provided insight into what it takes to create jobs and grow Maine’s economy.  Two-thirds of the Maine employers who participated in the survey represented small, often family-owned businesses—the backbone of Maine’s economy. 

 

“Healthcare and healthcare insurance costs were rated as among the three most negative influences on Maine’s economy” said Edward J. McLaughlin, MERI president & CEO. “Controlling healthcare costs was identified as the 4^th most important priority for State policy changes to strengthen Maine’s Economy, behind tax relief, less government and eased regulation.”

 

Dr. Verne Kennedy, President and CEO of Market Research Insight (MRI), the nationally renowned research firm which has conducted all three SMS surveys for MERI, has also conducted similar surveys in 24 other states. Dr. Kennedy noted: “This is very strong feedback. The perception of Maine employers on healthcare costs is universal (greater that 90%).”

 

But the business community was less unified concerning specific recommendations to fix the problem. When asked. ”Do you support the state policies creating a healthcare risk pool?” Forty-four % were neutral on the issue with 28% in favor and 29% against, clearly split down the middle, that despite research that shows that a high risk pool is one of the essential ingredients of a competitive market. One reason for the split may a lack of information on exactly how the risk pool might work to lower costs.

 

“"Maine's high health insurance rates are a result of too much Government regulation and not enough competition”, states Daniel Bernier, Government Affairs professional for both the Maine Insurance Agents Association (MAII) and the National Association of Insurance and Financial Advisors – Maine (NAIFA). “Business needs to understand that some Government regulation is necessary to protect the consumer, but Government regulation does not lower price, competition lowers price”, said Bernier.

 

Maine’s business leaders agree. When asked “Do you support creating state policies that encourage competition among healthcare providers?” an overwhelming 89% supported the concept. Bernier says that creating a risk pool is just one public policy change that will help. Repealing the Certificate of Need (CON) provisions put in place by Maine Legislators would also help. “I find it a little disconcerting talking to businesses and finding how many believe the Certificate of Need process reduces healthcare cost” said Bernier. “The evidence points to CON raising health care costs and as a basic rule of economics, when you limit the supply of something the cost goes up.”  

 

And when asked about the current state government initiative to address the situation, the Dirigo Healthcare Program, Bernier and business leaders also agreed; 49% of polled business leaders opposed the government program with 38% having no opinion and only 13% supporting. Bernier’s comment, “Dirigo, by its very nature, reduces competition through additional government regulation. I don’t think it is the answer.”

 

Copies of the MERI 2005 Senior Management Survey Executive Summary were provided to Governor Baldacci, Maine Legislators, and MERI Subscribers; it is also posted on MERI’s web site www.fixmaine.com  Additional information on healthcare cost provided by MIAA and NAIFA can also be source from the site by clicking on the “increasing healthcare costs” hot link.

 

“State policies are crucial to the ability of Maine employers to compete in today’s economy,” said Peter G. Vigue, MERI chairman and Cianbro CEO.  “Communicating these vital issues to policymakers in Augusta and the public will increase our ability to work together as a team in improving Maine’s economy and creating quality jobs.”

 

This release represents the results of scientific surveys of public opinion conducted by Market Research Insight (MRI).  Verne Kennedy, Ph.D., senior analyst for MRI, served as project manager.  Dr. Kennedy is a former college president and is one of the most respected researchers in his field.  

 

The Maine Economic Research Institute (MERI) is an independent, private, not-for-profit corporation governed by a board of directors who are business owners, CEOs, and senior staff representing a diverse group of Maine companies.  Incorporated in 1999, MERI is dedicated to improving Maine’s business environment by providing objective information to enhance economic policy-making.  Committed to a healthy economy and quality jobs, MERI conducts nonpartisan research and tracks legislator performance on critical business issues.  Please visit www.fixmaine.com .

 

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