The Cost of Doing Nothing
We cannot get our economy back on track without repairing the American health care system. Health care reform is not just a moral imperative, but also an economic necessity. In 2007, the U.S. economy lost as much as $207 billion as a result of the poor health and shorter lifespan of the uninsured.
Skyrocketing health care costs add to families' already overwhelming burden, threatening their health and financial security. We can do better. Solving America's health care crisis will improve quality of care, reduce costs and make businesses more competitive.
The urgent need for reform is more apparent now in Pennsylvania than ever. In the past eight years, health care premiums for family coverage have risen more than 6 times faster than wages. With 6.7% unemployed, many families are at risk of losing their health coverage. The message is clear: Pennsylvania's families urgently need Congress to take direct action on health care reform.
Supporting Facts
- Health Insurance premiums in Pennsylvania increased by 86.2% from 2000 to 2007, while median earnings only increased a mere 13.4%. The median yearly wage in 2007 for Pennsylvania was only $28,155, but the average health care premium for a family was $12,513. This means that premiums grew 6.4 times faster than wages.
- In Pennsylvania, approximately 2,240,000 non-elderly people spent more than 10% of their pre-tax family income on health care costs in 2008. 87.1% of those people have insurance, but are underinsured. 1,952,000 Pennsylvanians with insurance spent more than 10% of their pre-tax income on health care costs, and 496,000 spend more than 25% of their income.
- By 2016, projections show that Pennsylvania families will have to pay close to $27,000 for health care or over 52 percent of median household income. This would represent a 93 percent increase over 2008 levels.
- In addition, more and more Pennsylvanians have been forced into the exorbitantly expensive individual market, as unemployment reaches massive heights. As of December 2008, 433,674 Pennsylvania residents were unemployed. That reflects a loss of over 155,000 jobs statewide last year alone, increasing the state unemployment rate by over 2 percentage points.
- If the state keeps losing jobs at the rate it did last year, 674,961 people in Pennsylvania will be unemployed by 2010. 56.95% of Pennsylvanians depend on their employers for their health insurance. If nothing is done to stem the economic downturn and reform our health care system, 137,420 Pennsylvania workers will lose their current health coverage, meaning that 48,257 more people will likely enroll in COBRA. That leaves 89,163 people who will have to enroll in Medicaid, fend for themselves on the private market, or become uninsured.
- This year Pennsylvania faces a $2.3 billion budget shortfall. As a result, the state government has implemented a hiring freeze on state employees, and proposed eliminating 2,600 positions. As of 2007, 32% of all state spending has gone to Medicaid and SCHIP. $17.6 billion went to spending on Medicaid alone.
- As of 2007 there were already 223,594 uninsured children in Pennsylvania, and more than 950,000 uninsured adults. 345,313 of uninsured adults in Pennsylvania also live below the Federal Poverty Line. Pennsylvania's economy lost as much as $5 billion because of the poor health and shorter lifespan of the uninsured in 2007. That equates $4,200 per uninsured Pennsylvania resident.
- Of the top 10 employers in the state of Pennsylvania, 4 of them are Healthcare Providers. According to the US Census, 713,573 individuals work in the Heath Care Sector in the state & make an average of $3,548 per month, which accounts for $2.5 billion in wages per month.
The health of the American economy cannot improve without addressing the healthcare crisis. Building on the existing healthcare system, quality, affordable healthcare can be guaranteed to every American. It's the reform truly needed to rebuild Pennsylvania's economy.
