Families that are insured for health care would have to shell out an average of US$ 922 in additional premiums in 2005 to make up for the cost of treatment of those without insurance, a report published by consumer group Families USA has said.
The study, conducted by noted economist Kenneth Thorpe who is an Emory University professor, said that about US$ 1 out of every US$ 12 spent on paying premiums for health insurance goes into the treatment of the uninsured. He said that this amount would increase to an average of US$ 1,502 within the next five years if the increase in insured patients were not curbed.
This was because the cost of healthcare for the uninsured was being subsidized by the insured. Thorpe’s report found that uninsured Americans took care of only one-third of the health care costs. This resulted in hospitals footing a bill of around US$ 43 million, an amount that was subsequently passed on to the insured.
“The large and increasing number of uninsured Americans is no longer simply an altruistic concern on behalf of those without health coverage but a matter of self-interest for everyone,” said Ron Pollack, executive director, Families USA.
According to US Census Bureau estimates, around 45 million Americans did not have health-care insurance in 2003. This figure is increasing on a year-on-year basis.
Thorpe’s report, which was drawn up on data from federal agencies like the Census Bureau, the National Center for Health Statistics, and the Agency for Healthcare Research and Quality, calculated the cost that uninsured patients were passing on to insured families.
The findings showed that insured families in the states of Arkansas, New Mexico, Montana, Oklahoma, Texas and West Virginia would have to pay an additional premium of more US$ 1,500 in 2005 to take care of the expenses incurred by the uninsured. The list would spread to Alaska, Arizona, Florida, Idaho, and Washington by 2010.
“These extra costs place unacceptable burdens on all families, as well as our small businesses and our medical providers. We must find affordable ways to cover more workers and their families. States must work with the federal government to make such coverage a reality,” said Kathleen Sebelius, the governor of Kansas State.
Center for Studying Health System Change’s Paul Ginsburg said, “Ten years ago, I might have been skeptical about a study like this, but in 2005, I’m not. It’s a vicious circle that will not end until we as a nation take steps to solve the underlying problems.”
Susan Pisano of America’s Health Insurance Plans echoed his thoughts. “This report shows there are many reasons for us to address the reasons for lack of insurance. One is to improve the health of the population and the other is to get a handle on the cost problem,” she said.
