Small business, education and economic leaders discuss high health care costs, especially the impact of rising hospital charges amid hospital consolidations and mergers, on Wednesday, Aug. 20. From left: Dianne Byrum, partner at Byrum & Fisk Advocacy Communications, moderates the panel conversation with Bret Jackson, president and CEO of the Economic Alliance for Michigan; Chandra Madafferi, president and CEO of the Michigan Education Association; Kelli Saunders, vice president of policy and engagement at the Small Business Association of Michigan; and Carrin Harris, CEO of Blitz Proto, a small business in Oakland County. | Photo courtesy of Byrum & Fisk Advocacy Communications

DETROIT — During a national symposium on women’s health in the workplace Wednesday, leading advocates for Michigan educators and business spoke out against rising hospital costs, breaking down how inflated bills for the same procedures are harming employers, employees and the economy at large.

The panel, hosted by Byrum & Fisk Advocacy Communications partner Dianne Byrum, a former Democratic lawmaker, featured members of the Economic Alliance of Michigan, the Michigan Education Association and the Small Business Association of Michigan, alongside perspective from small business CEO Carrin Harris.

Bret Jackson, Economic Alliance of Michigan president and CEO, told attendees that health care costs for his employees had increased 41% over the past three years. As a result of these increasing costs, Jackson said he was not able to offer his employees an increase in wages this year, and with an expected rate increase of 11% for next year, Jackson said he was doubtful he’d be able to increase wages next year.

According to KFF, a nonpartisan health policy research, polling, and news organization, health care premiums for a family of four cost $5,791 in 1999, whereas in 2024, worker contributions alone had risen to $6,296.

Jackson also noted that the costs of health insurance have outpaced what a family of four will pay in state and federal taxes combined.

When looking to address this issue, Jackson noted two thirds of Michigan hospitals have double digit operating profit margins. While some rural hospitals are struggling to stay afloat, those double digit operating profits showcase where the money is going, Jackson said.

Economic Alliance for Michigan President and CEO Bret Jackson speaking at a panel on the rising cost of hospital services. Aug. 20, 2025. | Screenshot

Jackson also pointed to data from the Michigan Health Purchasers Coalition showcasing differing costs of procedures between hospitals.

For childbirth, vaginal delivery of a baby carried a median cost of $5,810 at Trinity Health Oakland, the least expensive facility in Metro Detroit, compared to $14,671 at the Detroit Medical Center’s Harper Hutzel hospital.

For cesarean births, Trinity Health in Oakland was again the least expensive facility, with the median cost of care coming in at $7,590 compared to $14,712 at the Detroit Medical Center’s Receiving Hospital.

“Again, same patient, right? Could be. Different facility, substantially different cost. Bottom line is health care costs are going up at an incredibly unsustainable rate, and it’s impacting employers’ ability to pay their employees more, to hire more workers, to invest in their companies,” Jackson said.

These rising costs also carry a higher impact on women who overwhelmingly make the health care decisions for their families, Jackson said.

“Not only are they making health care decisions based on what information they know, they’re also seeing the bills as they come in, and perhaps not focusing on themselves, because they see how much it costs to take care of their families, and they want to make sure that their families are being taken care of,” Jackson said.

Kelli Saunders, the vice president for policy and engagement at the Small Business Association of Michigan said that for the past 10 years small business owners have had to grin and bear increasing health care costs, though the strains of recent years have raised questions on whether they can continue to offer these benefits.

In a survey of 300 small business association members earlier this year, 76% said the cost of health care was impacting their ability to hire employees while 51% said they had to reduce or eliminate benefits due to costs.

“This is a red flag moment where our small business owners – who make up over half of the jobs in our state – are saying, ‘I don’t know what to do, and it’s either shut my doors or reduce benefits.’ And that’s not the right answer, so let’s get around the table and try and solve it,” Saunders said.

Kelli Saunders, vice president for policy and engagement at the Small Business Association of Michigan details the impact of rising hospital service costs on small businesses. Aug. 20, 2025 | Screenshot

School districts face a dilemma

Chandra Madafferi, president and CEO of the Michigan Education Association shared how rising health care costs had placed a similar strain on budgets for schools, stretching beyond personnel like teachers and school counselors.

In Michigan, the cost of health care seems to have exploded in recent years, placing it out of reach for many, Madafferi said.

While some educators have received great raises in recent years, those earnings have largely been wiped out by the increased cost of health care, Madafferi said. It has also raised questions among young educators on whether they will be able to afford to have more than one child, she said. When looking at the cost of education, one question that gets asked is how a district can provide an excellent workforce, Madafferi said. “We have got to still attract the best and the brightest, and that means providing a competitive salary,” Madafferi explained.

Michigan Education Association President and CEO Chandra Madafferi speaking at a panel on the rising cost of hospital services. Aug. 20, 2025. | Screenshot

However, increased health care costs have impacted districts’abilities to offer competitive salaries and benefits, Madafferi said, pointing to hospital consolidation as another piece of the problem.

According to a report published by global policy thinktank RAND, hospital consolidation is tied to an increase in price, with quality of care either remaining the same, or worsening.

A report from the Detroit Free Press in 2023 ahead of the Henry Ford and Ascension Michigan merger noted the effort would place 59% of Michigan hospitals under three health systems.