Acorda Therapeutics Inc. in Hawthorne could go out of business or be forced to eliminate health care for its employees due to rising insurance costs, according to its CEO.
U.S. Rep Nita Lowey last week addressed a room full of company employees regarding the state of the biotech industry in Westchester County, which resulted in talk of stimulus funding and a “huge budget item” for Acorda, namely health insurance.
“It went up 10 percent last year for us to pay for all of our health insurance,” said Dr. Ron Cohen, president and CEO of Acorda. “That”™s 10 percent in a zero inflation environment. If this keeps up, we are going to go out of business just on health care. Or, we”™ll have to eliminate health care. And we”™re successful relative to most of the companies out there.”
Acorda develops and markets therapies to restore neurological function in people with spinal cord injury, multiple sclerosis and related conditions.
One employee asked Lowey about health care reform.
“I don”™t know anyone who would say this system is great,” Lowey said. “Many people feel they”™re paying a premium that is too high; that they”™re paying too much for drugs and they can”™t get access.”
“Responsible business owners (such as Cohen) realize that health care is something they have to pay for and when they can”™t afford it, it”™s not like they”™re bad people,” she said. “They”™re basically supporting their own families.”
Lowey discussed the proposed health care bill and emphasized the need for a bipartisan effort before the bill is brought before the president for signature.
“If you”™re happy and your boss provides wonderful healthcare, you can keep it,” she said. “But, if the market can produce good health care that is quality health care at a better cost, we”™re saying, ”˜Let”™s look at that.”™”
Paul Vitale, vice president of government and community relations at The Business Council of Westchester, said there is “widespread agreement among members that employee health care is a concern.”
“In any health care reform system, you need to look at primary and preventative care, regional and community health planning and spread out capital investments,” he said. “Medical liability reform is key and we have to stay away from costly mandates.”
To maintain and attract more companies in the biotech sector to the area, Vitale said fostering a pro-business environment is a necessary foundation.
“The governor”™s budget that passed in April raised taxes and fees by $7 billion and that”™s not the right message to send to companies thinking of relocating,” he said. “It didn”™t contain any significant job retention or job attraction provisions, which was very unfortunate. It raised fees and taxes and made the environment more hostile to business.”
“All around the country, people are experiencing huge problems with premiums and the reimbursement rates to hospitals and patients are not going up at all,” said Bill Mooney, president of the Westchester County Association. “What is happening in many cases is instead of the money going back to health care, it is going to administrative functions.”
Asked about ways to make Westchester more biotech-friendly, Lowey said, “We must invest to create green jobs,” a predominant theme among economists sought out by the president and the House.
“I was visiting another company, which was looking for ways to insulate homes and save energy, which I think is a tremendous area for Westchester County,” she said. “I”™m very pleased that stimulus funding is available, and they”™ll have to compete for it, but it”™s very important.”
On attracting businesses to the Hudson Valley region, “Sometimes it”™s tax incentives, sometimes it”™s land that can be provided and there are multiple ways we can do it,” she said. “I”™ve learned that this area is becoming the leading area for biotech and I will go back and argue that in my district, this creates jobs and makes tremendous advancements in health care to save people”™s lives.”
