On Tuesday, General Motors announced that it will lay off 25,000 workers and close several plants around the country in an effort to contain rising costs. The automaker said high healthcare costs were a major factor in its decision. The company spends about $5 billion per year on health insurance for its current and former workers. GM Chairman and CEO Rick Wagoner noted that healthcare costs add $1,500 to the cost of each vehicle the company makes. "This puts us at a serious disadvantage compared with our foreign competitors," Wagner said.
- see this story from the Economist
- see this story from National Public Radio