HEALTH: A Closer Look

Health Insurance Matters

There is a strong relationship between health insurance coverage and access to medical services. Health insurance makes a substantial difference in the amount and kind of health care people are able to afford, as well as where they obtain care. Research has repeatedly shown that the lack of insurance ultimately compromises persons' health because they are less likely to receive preventive care, are more likely to be hospitalized for avoidable health problems, and are more likely to be diagnosed in the late-stages of disease. Having insurance improves health overall and could reduce mortality rates for the uninsured by 10 to 15%.

Health Insurance also affects the financial well-being of families.  Insurance helps reduce the financial uncertainty associated with health care, as illness and health care needs are not always predictable and care can be very expensive.  Therefore, those lacking coverage are more financially vulnerable to the high cost of care, are exposed to higher out-of-pocket costs compared to the insured, and are more often burdened by medical bills.

The Public Safety Net

Medicaid and SCHIP provide coverage to certain low-income populations that meet eligibility requirements.  The programs play a particularly important role for children, aiming to cover nearly all low-income uninsured children. The role of Medicaid for adults is far more limited however, covering only some low-income parents and disabled individuals, leaving most childless adults ineligible, regardless of how poor they are. Recent growth in Medicaid and SCHIP enrollment has filled in the sizeable gap created by decreased employer sponsored insurance in the past two years.  In contrast, adults have accounted for all of the growth in the number of uninsured since 2000.  However, with the current fiscal crises facing states, future expansions of public coverage are in jeopardy.

Options for Health Insurance Reform

When surveyed, Americans consistently support guaranteeing health insurance for more people. Options for reforming the current health insurance system and decreasing the number of uninsured continues to be debated and are already key issues in the emerging presidential campaign.  However, the economic downturn, coupled with rising health insurance premium costs and fiscal constraints to expanding public coverage, pose a significant challenge for reform.

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