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Michigan's uninsured: The scope of the problem

by: matt

Tue Jan 31, 2006 at 00:44:36 AM EST


Okay, knowing that statistics about health coverage probably isn't the sexiest topic, I'll try to make this as painless as possible.

Unless otherwise linked, all of the following information comes from a 2005 Families USA report entitled "Paying a Premium: The Added Cost of Care for the Uninsured." Oh, and by the way, understand that all of the costs presented here are in terms of the rates paid by people who have insurance - not the inflated rates providers often charge people without insurance (more on this in a bit.)

First, a look at the national scene: 

Total U.S. population (2005): 294,963,000
Number of Americans without health insurance (2005): About 47,564,000 (16.1%)

Who pays when people who are uninsured get sick?


Americans who have insurance (or their employers) pay an estimated $29 billion each year in additional premiums to cover the costs of people who lack insurance.

Average annual family health insurance premium: $10,979
Added annual cost (on average) to family health premiums to cover cost of care for insured: $922 per family plan
matt :: Michigan's uninsured: The scope of the problem
Average annual individual health insurance premium: $4,065
Added annual cost (on average) to individual health premiums to cover cost of care for insured: $341 per individual plan

Workers receiving employer-sponsored health insurance are now asked to chip in annually (on average):

$564 for individual coverage
$2,664 for family coverage

State with highest percentage of uninsured: Texas (26.2%)  - where is our President from?


Now for the Michigan situation:

Believe it or not, Michigan actually does better than most other states when it comes to covering the uninsured (we're ranked 15th). But...there is still much work to be done:

Michigan's total population (2005): 10,167,000
Number of Michiganians without health insurance: 1,252,000 (12.3%)

Who pays when Michiganians who are uninsured get sick?

The uninsured (out-of-pocket): Haven't found this figure anywhere yet. Bummer.
Government: $269,133,000
Higher premiums for those with insurance: $863,975,000

Average annual family health insurance premium: $11,272
Added annual cost (on average) to family health premiums to cover cost of care for insured: $730 per family plan (6% of premium)

Average annual individual health insurance premium: $4,225
Added annual cost (on average) to individual health premiums to cover cost of care for insured: $274 per individual plan (6% of premium)

Who are "the Uninsured"?

Nationally, 4 out of 5 people without health insurance are employed or are in a family with an employed adult.

49% of uninsured adults with chronic conditions forgo needed medical care or drugs due to cost.
27% of  uninsured adults with chronic conditions reported no visits with a health professional in the past year.

Nationally,  each year it is estimated the deaths of 18,000 people between the ages of 25 and 64 can be attributed to a lack of health insurance. By way of comparison, more people die from not having health insurance than die in drunk driving accidents.

Two other points worthy of your consideration:

About half of all personal bankruptcy cases are due to medical reasons.

Economists estimate that between $65 and $130 billion of productivity is lost each year due to uninsurance in America.

Postscript: People without health insurance get ripped off:

Like I said at the beginning, one of the really charming things many doctors and hospitals do is charge people without insurance more than people who ARE insured. Sometimes, they charge A LOT more...like FOUR TIMES more. The reason? Well, big insurance companies and governments have a lot more bargaining power and can negotiate better rates. Don't have insurance? Well, my friend, you're just S.O.L.  Ah-ah-ah...don't complain. No one ever claimed life was fair. Besides, you probably did something to bring this on yourself.

Good sources for info on health care and the uninsured:

Kaiser Family Foundation
Economic Policy Institute
Families USA
Economic Research Initiative on the Uninsured (U-M)
Michigan Department of Community Health - info on the Uninsured
Citizens Research Council of Michigan: Health Insurance Coverage and Uninsured/Uncompensated Care in Michigan Hospitals (2002)
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Remember these are (0.00 / 0)
average costs. There is a big difference between what large corporations pay (because they have buying power, or self-insure) and what small businesses pay for health care coverage.

These average costs are also not for "Traditional BC/BS" that we were all once used to getting as a benefit. Today those of use who are lucky enough to get health care as a benefit, get less today and we also have higher deductables and co-pays.

"The truth is rarely pure and never simple." The Importance of Being Earnest, Act I, Oscar Wilde, 1895


Exactly right (n/t) (0.00 / 0)


"Never give in. Never give in. Never, never, never, never." - Winston S. Churchill

[ Parent ]
Gouging of uninsured (0.00 / 0)
A few years ago when I needed some big-time dentistry (root canal, crown, etc.), I ended up driving to Windsor in Canada to get it done by a University of Michigan graduated dentist who was a few hundred dollars cheaper out of pocket than the local dentists in the USA for an uninsured student like me.  I'm not a big lover of dentists to start with ... but the striking difference in prices paid by, say, Delta Dental insured folks and the rest of us is dumbfounding.

Fine reporting, Matt (0.00 / 0)
Please keep up the good work on this.  I would love to see a trail of bread crumbs (with accompanying dollar amounts) on a typical health insurance claim--who touches it, how many times, how much it costs in overheads each time it passes through someone's hands, and who really makes a profit.  There's so much bad  information out there, with doctors blaming the lawyers while the hospitals, health insurance carriers, and malpractice carriers always seem to dodge the issue.

Another good topic would be an unbiased comparison of our system with Canada's single payer system.  I drop into the Health Care Blog from time to time; they have something up on this subject this week:  http://matthewholt.net/2003/11/policy-oh-canada.html


Old link (0.00 / 0)
The Canada piece is 2003, but here's the current link to the blog:  http://www.thehealthcareblog.com/

[ Parent ]

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