The Sconi

High health care costs are affecting Wisconsin’s business environment, making employers less competitive. According to the Wisconsin Employer Survey, 44 percent of Badger State employers experienced health care cost increases exceeding 10 percent over the past year. Another 41 percent saw costs rise between six and 10 percent.

These rising costs coincide with a general inflation increase of more than 20 percent in recent years, complicating businesses' ability to invest in employees and equipment.

Wisconsin Manufacturers & Commerce (WMC), the state chamber and manufacturers’ association, conducted the survey during the first three weeks of July on various topics.

The survey also highlighted that Wisconsin stands out for its high health care costs. Fifty-four percent of business leaders reported higher health care costs in Wisconsin compared to other states where they operate. This aligns with a recent study indicating that Wisconsin has the fifth-highest hospital costs in the nation. Employers indicated that these high prices have led to increased customer costs, lower employee compensation, and reduced capital investment.

“Wisconsin employers are at an extreme disadvantage when it comes to health care costs,” said WMC Associate Vice President of Government Relations Rachel Ver Velde. “Instead of investing their limited resources into increased employee compensation or expansion of their companies, business leaders are having to pay for higher and higher prices for health care.”

Employers agree that action is needed to reduce high health care costs. When asked what state government could do to help their business, the top response was making health care more affordable. There is also strong support for hospital price transparency and a workers' compensation medical fee schedule similar to those in 45 other states.

“Our employers are hurting, and there are policy solutions we know will work to make health care more affordable,” added Ver Velde. “We urge policymakers to strengthen Wisconsin hospital price transparency laws and enact a medical fee schedule. Both policies would improve our state’s economic competitiveness and help employers who are facing record-setting inflation.”

The Wisconsin Employer Survey is conducted twice yearly by WMC, providing insights into important issues facing Wisconsin’s employers and outlining their economic outlook for both the state and the country. For the Summer 2024 edition, WMC surveyed 182 employers representing a cross-section of its membership from various sizes, industries, and geographic locations within Wisconsin.

Read the Summer 2024 Health Care Report here.