A recent report by Families USA, a national organization for health care consumers, stated that salaries in Ohio have increased more slowly than the national average, while health costs in the state have grown more rapidly than those across the country.
From 2000 to 2006, Families USA reported that health insurance costs in Ohio have risen 8.4 times faster than earnings. Across the country, insurance premiums are growing an average of 6.4 times faster than median earnings.
Many Ohio workers are concerned that if this trend continues, they may encounter less economic and health security.
According to Miami University economics professor Norman Miller, whether the concern over the loss of economic security is legitimate depends on what is causing health care costs to rise.
"It depends on why the price of health care went up," Miller said. "If health care costs went up because of decreased supply of health care, this statement is correct. But if the increase (in costs) is due to an increase in demand, then the statement is false."
The statistics that have been released with respect to salaries and health care are being reflected in concrete ways in the Oxford and Miami communities.
At Miami, Butler County's largest employer, employee health insurance rates will increase this January.
According to Richard Little, director of university communications, Miami is self-insured; when a university employee gets sick, the health insurance costs that the individual doesn't pay comes irectly out of the university's budget.
"In our case it's direct expense," Little said. "So when we see an increase in our costs, we have to go back and adjust."
The cost of providing health care for Miami employees has increased more than 16 percent over the past year. According to a letter to Miami faculty and staff written by Carol Hauser, senior director of human resources, this change is at least 7 percent higher than the national norm.
The university is currently adjusting employee premium shares to compensate for this rise in its costs. However, employees will not pay the entire 16 percent increase.
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Miami's employee health care premium shares work on a graduated scale. For instance, an employee in food service will pay a smaller percentage of the total cost of the premium than an administrator.
For example, an employee earning less than $20,000 per year who has family health coverage pays $9.57 per month - one percent of the total cost of their premium - or $114.84 each year. As of January, they will be paying $275.52 annually.
On the other hand, an employee whose salary exceeds $100,001 pays $105.22 each month for family care - 11 percent of the premium cost - adding up to $1,262.64 per year. In 2007, this cost will be $1,790.88.
Despite the increase, Little said employee health insurance rates are relatively low.
"It's a real blessing to work here," he said.
A chart released by the university comparing Miami employees' health care premiums to those of workers at other Ohio schools supports Little's assessment. The chart lists premiums for employees at three different levels, and Miami employees' premiums are lower than those of most other state schools. (See box)
Even if health insurance costs for Miami faculty and staff are lower than those at many universities, students and staff have voiced concerns that they are still too high.
A Miami student group called Students for Staff speaks out about issues regarding the living wage issue facing Miami employees. The organization was officially formed in the fall of 2005 in reaction to the 2003 university employee strike.
Many of the founders were motivated to start the group because they had developed personal relationships with employees and heard their personal testimonies about the living wage. Some full-time university employees are still considered to be living below the poverty line even though changes were made to employee salaries and health benefits in 2003.
"A full-time job should get people out of poverty, not leave them in it," said Dylan Daney, an organizer of Students for staff. "Of course not all workers fall into this category, but the small segment of employees that qualify deserve change."
Daney said he believes that university salaries and health care plans should be reevaluated.
"Our organization believes this issue needs to be a priority with the administration," Daney said.
In an effort to improve awareness on the living wage and related issues, Students for Staff is hosting a program at 6 p.m. Oct. 25 in the Shriver Center's Heritage Room. This is an opportunity for students to hear from Miami employees and get a first-hand glimpse of how the labor issue is affecting Oxford and its surrounding communities.
The city of Oxford, another major local employer, has also recently changed the amount its employees pay for health care. Oxford formerly paid the total cost of health care for all of its employees. But due to the fact that the city is self-funded, this policy had to be changed two to three years ago.
Now Oxford employees have to pay a portion of their health care through employee contributions. Donna Heck, the human resources director for the city of Oxford, considers this amount to be reasonable compared to many cities in southwest Ohio.
Even so, she stated, "This change was a pretty heavy hit for Oxford employees. Most people do not recognize this and it is important that people understand how such changes affect a city's employees."
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