Healthcare costs tip against U.S. firms

WASHINGTON, May 7 (UPI) -- Healthcare costs in the United States are rising faster than wages and productivity, an economic policy director said Wednesday.

To keep up, U.S. businesses need to raise prices, but "you can't do that," economist Len Nichols, a policy director for the New American Foundation told the Los Angeles Times.

A new study found that U.S. manufacturers are paying twice what foreign competitors pay for healthcare, which averages $2.38 per hour in the United States, the Times reported.

George Rudes, Chief Executive Officer of Not Your Daughter's Jeans in Vernon, Calif., said the best deal he could find for his 100 factory workers -- with the company paying 50 percent of the bill -- was rejected by employees, who would have had to contribute $80 per month.

The factory pays 10 percent above minimum wage, Rudes said.

"They just can't afford it. How can anybody afford $4-a-gallon gasoline and insurance?" Rudes asked.

On the other hand, if U.S. jobs move overseas "who is going to be able to buy our middle-class stuff?" Nichols asked.