US Health Care Spending

The McKinsey Quarterly chart focus newsletter chose a favorite topic of mine for their latest feature.

Health Care.

chartfocus_jan09

The chart says it all. At Horst Engineering, we are currently in our renewal phase for our health insurance coverage. Our biggest expenses are labor, raw  material, then medical insurance. It is a massive expense for us and one that we take seriously. Medical benefits are important to everyone. Of course, I have to add that the expense is increasing at a rate that far exceeds inflation.

The other thing about health insurance is that other than providing a necessary and valued benefit, it does little to further the growth of our business. I don’t consider it an investment. Something needs to be done. I’ve said it before. We can’t keep letting it go up. Through our new Horst Medical business unit, we are working on ways to sell more precision machined products into the medical industry. If you can’t beat them, join them!

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