Steve Burd, chairman, president and CEO of Safeway, has been calling for healthcare reform for years and now he has gone to Capitol Hill to draw increased attention to an issue he clearly feels cannot be put off any longer.
Mr. Burd said, left as is, healthcare costs will equal the net profits of companies as early as 2008. To address the problem he has come out in support of a proposal by Senator Ron Wyden (D-OR) to reduce the nation's healthcare bill.
"Senator Wyden, with his commitment and passion for healthcare reform, has introduced an innovative proposal that lays a foundation to begin a serious discussion on healthcare reform in this country," said Mr. Burd. "Our nation is facing a crisis that requires immediate attention. Working together, business, labor, government, consumer groups and healthcare providers can collectively solve this problem."
Mr. Burd was supportive of a number of initiatives in Sen. Wyden's proposal. These included: seeking market-based solutions; an emphasis on preventative care; incentives to encourage personal responsibility and healthy behaviors; and a broad commitment by individuals, employers, government and healthcare providers in dealing with the issue.
"The problems facing the current healthcare system can be solved, but it will take innovative leadership," he said. "Without some dramatic change, not only will the uninsured population continue to grow but the American worker will become less competitive. We have a unique opportunity to solve this problem and instill market mechanisms that reduce costs, increase affordability and improve health by assisting individuals in making better healthcare decisions."
Safeway has moved to a consumer-driven plan for its non-union workforce. The plan pays 100 percent of preventive care and offers incentives to employees to improve their healthcare decisions. Total healthcare costs for these employees have decreased 30 percent over the two-year period since the plan was first enacted. Most of those savings have been passed directly to employees in the program.
Discussion Questions: Is it time for the retail industry to join with Steve Burd on the healthcare reform issue? Does the industry have the size and influence to move the healthcare reform agenda forward?