Health care certainly plays a major role in the U.S. economy, and by almost any objective account a highly positive role. It employs 13 million Americans and accounts for one out of 10 jobs. But the assertion that the costs of providing health insurance cripples American corporations in the global economy is simply wrong.
CBO director Douglas W. Elmendorf explained this last week to the Senate Committee on Finance... The point is that for employers, health care is merely a part of total compensation: It reduces cash compensation for employees but it does not increase costs of employment.