COST: What's Love Got to Do With It?

April 29, 2008 - 5:30pm

Forget pheromones. A new poll from the Kaiser Family Foundation found that seven percent of adults reported that in the past year they or someone in their household decided to get married in order to get health insurance from a spouse. (We don't even want to think about what their bridal gift registry looks like.)

The Kaiser poll had lots of somber news as health care costs are taking their toll on American families (including the middle class) during the economic downturn. Twenty-eight percent report that they or their families have had a serious problem paying for health care, behind paying for gas (44 percent) and about tied with getting a good-paying job or raise in pay (29 percent). Smaller shares report serious problems paying their rent or mortgage (19 percent), dealing with credit card or other personal debt (18 percent), paying for food (18 percent) or losing money in the stock market (16 percent). That 28 percent figure was true as well for middle class families, making between $30,000 and $75,000.

"Many people view health and the economy as separate issues, but the cost of health care is a significant pocketbook issue for many families and paying for health care has become a key dimension of the public's economic concerns," Kaiser Family Foundation President and CEO Drew Altman said.

Health costs aren't just sending families reeling; states are also facing huge pressures, according to a separate report this week from the Kaiser Commission on Medicaid and the Uninsured.

Each time the national unemployment rate goes up one point, another 1.1 million people become uninsured. The study's authors also projected that a million people would join either Medicaid or the State Children's Health Insurance Program (to the tune of $3.4 billion) while states have less money to spend on Medicaid, kids, schools and everything else - all of which tends to make the economic hole even deeper. All this when Congress and the White House are battling over new rules that would reduce federal spending on Medicaid, which is a joint federal-state program.

As the report by Stan Dorn and other Urban Institute researchers concluded:

As a new economic downturn unfolds, many states appear headed for serious budget shortfalls. Economic hard times reduce state revenues and increase the number of people who qualify for need-based benefit programs. Because of state balanced budget requirements, these trends eventually cause many states to increase taxes and fees or cut Medicaid, SCHIP, and other services. As a result, economic stimulus and help for vulnerable residents are withdrawn precisely when they are most needed.

Jane Sarasohn-Kahn over at Health Populi blogged about these studies today, tying the concern about health to the growing hard times and a credit crunch that could go on for some time. She noted that stores have been rationing rice - so we probably can't even throw it at those newly-insured newlyweds.

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