Sarah Axeen: All Publications, Events and Press

US Uninsured Total Again Tops 46 Million | American Medical News

Cecille Isidro — Sun, 20 Sep 2009 20:47:00 -0400

"It's the people who you wouldn't necessarily expect to be losing their insurance who are losing their insurance," said Sarah Axeen, policy analyst for the ... and more »

Medicine Is the Best Stimulus | CBS News

Communications — Tue, 23 Dec 2008 16:07:00 -0500

According to Sarah Axeen and Elizabeth Carpenter of the New America Foundation, if employer-sponsored insurance premiums and family income rise at the same ...

The Cost of Doing Nothing on Health Care

Cecille Isidro — Fri, 12 Dec 2008 10:50:00 -0500

President-elect Barack Obama and his new health reform chief Tom Daschle made clear on Thursday that even amid tremendous economic crisis, their New New Deal would take on that persistent piece of unfinished business from the Old New Deal -- health care.

"Some may ask how at this moment of economic challenge we can afford to invest in reforming our health care system," Obama said. "And I ask a different question. I ask how can we afford not to."

An Issue for the Front Burner

Cecille Isidro — Thu, 20 Nov 2008 10:14:00 -0500

Exit polls in Pennsylvania showed that voters concerned about the economy and health care broke decidedly for Barack Obama.

In the days following the election, however, there was speculation that campaign promises about health care would have to make their way to the back burner in favor of the more pressing needs of the economy. Many doubt that bold domestic initiatives are feasible in a time of financial uncertainty.

But what if we knew that the cost of failing to fix our broken health-care system would be greater than the price of comprehensive reform? While there is no question that the next administration needs to take immediate action to stabilize our financial and housing markets, there is a compelling economic case for keeping health-care reform at the top of the agenda.

In the face of historic job losses and the worst financial crisis in 80 years, why did health care remain a salient issue in the final weeks of a tough campaign? The answer is simple: When people are worried about their jobs, they are nervous about the security of their health coverage. And when people are trying to figure out how they are going to pay their bills, they are concerned about being able to afford medical care.

Health-care costs are growing faster than wages, making health insurance more and more unaffordable for more and more U.S. families every day. Recently released research by the New America Foundation indicates that half of the families in Pennsylvania will have to spend more than 50 percent of their household income on health insurance by 2016 if something isn't done.

Our economy cannot recover if Americans need to spend a large and increasing share of their income on health insurance. Likewise, we know that the uninsured get sick unnecessarily, stay sick longer, and are less productive in the workplace.

Meanwhile, rising health-care costs are undermining the ability of U.S. businesses to compete globally, putting good U.S. jobs at risk. This is old news for a Pennsylvania economy that has shed more than 207,000 manufacturing jobs since 2001. More than 26,000 Pennsylvanians joined the unemployment ranks in August alone.

U.S. manufacturers pay an average of $2.38 per worker per hour for health benefits. Their foreign trading partners pay 96 cents. This means U.S. manufacturing companies give up almost $1.50 per worker per hour to their competitors because of health-care costs. Add it up nationwide, and the country spent $40 billion more on employee health care in 2005 than did its major trading partners.

There is a compelling moral case for health-care reform. But making sure every American has quality health coverage is also an economic imperative. Pennsylvania's economy lost nearly $5 billion because of the poor health and shorter life spans of the uninsured in 2007. This is more than $4,200 per uninsured resident - close to the cost of buying that resident an individual insurance policy, according to our research.

In the early 1990s, many Americans fought to protect the status quo of our health-care system. But health insurance and health care look different today. Hardworking Americans are paying more for less, employers are asking workers to bear a greater share of the health-care burden, and millions more have joined the ranks of the uninsured.

The economic and social costs of failing to reform our health system are high, and they will only rise over time. We must reform our nation's health-care system - not despite our economic crisis, but precisely because of the impact it has on U.S. workers and businesses.

During his campaign, President-elect Barack Obama asked record-breaking crowds at his rallies two questions: "Are you fired up? Are you ready to go?" When it comes to our health-care crisis, voters have answered: We are and we must.

Failing to Fix U.S. Health Care System More Costly Than Reform

Communications — Mon, 17 Nov 2008 10:34:00 -0500

The cost of failing to fix our broken health care system is greater than the price tag of comprehensive health reform, according to a new report and interactive online state guide released today by the Health Policy Program at the New America Foundation.

The New America report entitled, "The Cost of Doing Nothing: Why the Cost of Failing to Fix our Health System is Greater than the Cost of Reform," found that the average cost of a family employer-sponsored health insurance plan will climb to more than $24,000 or over 45 percent of median household income by 2016. Under this scenario, half of American households would need to spend more than 45 percent of their income in order to secure health insurance for themselves and their families.

The report also found that the U.S. economy lost as much at $207 billion in 2007 because of the poor health and shorter lifespan of the uninsured.

"When it comes to our health system, the economic and social impact of inaction is high and it will only rise over time," said Len Nichols, Director of the Health Policy Program at the New America Foundation. "Our economy cannot recover if Americans are spending increasing shares of their income on health insurance alone. Likewise, rising health care costs are undermining the ability of U.S. firms to compete and threatening good American jobs. Therefore, we must reform our health system not in spite of our current economic crisis, but rather precisely because of the impact health care has on American workers and businesses."

In addition, the report offers state by state analysis. This state specific data is also profiled on the Health Policy Program's new website, "The State of State Health." Visit http://statehealth.newamerica.net to find out how your state is doing, where it is going, and the real cost of doing nothing about our nation's health care crisis.

The Cost of Doing Nothing: Why the Cost of Failing to Fix our Health System is Greater than the Cost of Reform

The full cost of family employer-sponsored health insurance will be more than $24,000 in 2016. This means half of American households would need to spend over 45 percent of their income to buy health insurance for themselves and their families.
The average deductible will reach nearly $2,700 in 2016 - almost doubling the amount Americans will have to spend before their insurance begins to pay for their medical care.
The U.S. economy lost more than $207 billion in 2007 because of the poor health and shorter lifespan of the uninsured. This is over $4,500 per uninsured resident - more than the cost of providing that person quality health coverage.

In addition to the report, Len Nichols and the New America Foundation offer the following thoughts about the economic case for health reform:

With everything else that is going on in the economy, American families cannot afford rising health care costs. Health care costs will continue to rise faster than wages without action, making health insurance more and more unaffordable for more and more American families every day.
Rising health care costs undermine the ability of U.S. firms to compete and the stability of good American jobs. Furthermore, the current economy puts access to health coverage in jeopardy for many American families. We must find a solution to our health care crisis that guarantees every American quality, affordable health coverage regardless of whether or not their employer offers coverage. (For more information on health care costs and global competitiveness see Employer Health Costs in a Global Economy: A Competitive Disadvantage for U.S. Firms.)
The U.S. economy loses hundreds of billions of dollars every year because of the poor health and shorter lifespan of the uninsured. This is as much as, if not greater than, the price tag of comprehensive reform.
Rising health care costs are the single largest threat to the financial stability of federal, state, and local governments. We cannot secure our nation's long-term financial future until we fix our health care system.

For more information visit our blog at www.newhealthdialogue.org or contact Elizabeth Carpenter at carpenter@newamerica.net.

About the Health Policy Program

The Health Policy Program works in Washington, DC and across the nation to advance and protect a bipartisan dialogue about comprehensive health reform. Specifically, the Program promotes policy solutions that address the weaknesses in our health system related to cost, coverage, and quality. The Health Policy Program publishes the New Health Dialogue Blog, linked here. For more information please visit the Health Policy Program website.

About the New America Foundation
The New America Foundation is a nonprofit, post-partisan public policy institute whose purpose is to bring exceptionally promising new voices and new ideas to the fore of our nation's public discourse. Relying on a venture capital approach, the Foundation invests in outstanding individuals and policy solutions that transcend the conventional political spectrum. Headquartered in our nation's capital, New America also has offices in California and New York. More information is available at www.newamerica.net.

The Cost of Doing Nothing

Health Policy — Thu, 13 Nov 2008 17:07:00 -0500

Introduction
The U.S. health care system is in crisis. Health care costs too much; we often get too little in exchange for our health care dollar; and tens of millions of Americans are uninsured.

Len Nichols and Elizabeth Carpenter in BNA | 'Report Says Health Costs Hamper U.S. Firms'

Communications — Wed, 07 May 2008 07:46:00 -0400

Full article (subscription only)

Employer health costs put U.S. firms at a competitive disadvantage compared with certain trading partners, highlighting the need to separate health coverage from employer financing, according to a report scheduled for release May 7.

The report by the New America Foundation found that, while U.S. manufacturers pay $2.38 per hour for health benefits, five of the country's major trading partners pay an average of $0.96 per hour. The report looked at health care costs in Canada, France, Germany, Japan, and the United Kingdom compared with the United States.

The results do not indicate that U.S. firms are not competitive overall, but it does mean that "all else being equal, employer health costs make the United States less competitive than it could otherwise be," according to Employer Health Costs in a Global Economy: A Competitive Disadvantage for U.S. Firms.

U.S. business leaders are aware of the effects high health costs are having on them, Len Nichols, director of the Health Policy Program at the New America Foundation and lead author of the report, said. Knowing that they cannot remain competitive if they shift costs to workers or raise prices, they are increasingly pushing… more

New Report Shows Impact of Employer Health Care Costs on Global Competition and U.S. Jobs

Communications — Wed, 07 May 2008 05:22:00 -0400

Contact:
Elizabeth Carpenter
New America Foundation
401-529-9379 (cell)
202-261-6585 (office)
carpenter@newamerica.net

Washington, DC -- Rising health care costs undermine the ability of U.S. firms to compete internationally and threaten good American jobs, according to a report released today by the New America Foundation.

The New America report, "Employer Health Costs in a Global Economy: A Competitive Disadvantage for U.S. Firms," found that U.S. manufacturers spend more than twice as much for health benefits than their foreign trading partners.

"At a time when our nation is thinking seriously about how to stabilize its fiscal future and fix our broken health system, it is important to consider the negative impact of rising health care costs on America's ability to compete in a 21st century global marketplace. This research shows that a more sustainable health system is linked to a more prosperous U.S. economy," said Len Nichols, PhD, an economist who directs the Health Policy Program at the New America Foundation, and is the lead author on the report.

"Our current system is economically unsustainable for both employers and workers. Many have argued that health reform is a moral obligation. I argue it is both a moral imperative and an economic necessity," Nichols continued.

"Employer Health Costs in a Global Economy: A Competitive Disadvantage for U.S. Firms"

Health care costs cannot be fully shifted into wages in the short run. Economists generally believe that it is workers-rather than employers-who pay for health care through lower wages. Although this proposition may hold true in the long run, employers face a variety of constraints that may make it difficult for them to fully shift health costs in the short run.
Health care costs threaten international competitiveness. U.S. manufacturers spend more than twice as much for health benefits than their foreign trading partners.
Health care costs are an economy-wide problem. In a 21st century global economy, U.S. industries must compete internationally. Health care costs would not burden firms if they could be shifted to consumers through higher prices. But with globalization and increased competition in international markets, this is not feasible. Therefore, health care impacts the profitability of U.S. businesses and the stability of American jobs.
Workers are spending more for health care. The average worker contribution for family health insurance coverage has increased by 102 percent since 2000.
Transition to a more citizen-based health system. A new model for health care that reforms the current insurance marketplace, provides income-based subsidies, and is individual, rather than employer-based, would enable us to finance our 21st-century health system in a more sustainable and competitive way.

On Friday, May 9th, Senator Deborah Stabenow (D-MI) will join Len Nichols and representatives from the business, labor, and economic communities to discuss this important nexus of health care and the economy.

Information on the event: http://www.newamerica.net/events/2008/employer_health_costs_global_economy

Link to the full report: http://www.newamerica.net/publications/policy/employer_health_costs_global_economy

About the Health Policy Program
The Health Policy Program works at the national level and in California to achieve fully portable health insurance to all Americans while raising the average quality of care and lowering the rate of cost growth. More specifically, the Program promotes a mandatory, citizen-based approach to health insurance that, combined with credible cost containment measures, can ensure universal coverage and enhance America's long-term economic and social well-being. The Health Policy Program publishes the New Health Dialogue Blog, linked here. For more information please visit the Health Policy Program website.

The New America Foundation is a nonprofit, post-partisan public policy institute whose purpose is to bring exceptionally promising new voices and new ideas to the fore of our nation's public discourse. Relying on a venture capital approach, the Foundation invests in outstanding individuals and policy solutions that transcend the conventional political spectrum. Headquartered in our nation's capital, New America also has offices in California and New York. Pleave visit our website at www.newamerica.net.

Employer Health Costs In a Global Economy

Health Policy — Tue, 06 May 2008 05:29:00 -0400

Increasing Employer Health Costs, Lowering U.S. Competitiveness

Although most Americans get health insurance through their employers, business leaders are increasingly united in their belief that rising health care costs threaten America’s competitiveness in the global economy. Business support for comprehensive health reform has been growing as a result.

Cost Of Failure

Health Policy — Tue, 25 Mar 2008 06:07:00 -0400

In 2000, the Institute of Medicine (IOM) estimated that the “annualized economic cost of the diminished health and shorter lifespan of Americans who lack health insurance is between $65 and $130 billion for each year of health insurance forgone.”

After updating the IOM’s numbers to reflect growth in the economy and increases in the number of uninsured, we estimate that the poor health and shorter lifespan of the uninsured cost the U.S. economy between $102 billion and $204 billion in 2006. This estimate does not include spillover costs. For example, when medical bills go unpaid, providers attempt to recoup lost revenues by raising the rates for their services. In response, insurers raise premiums. This vicious cycle of “cost shifting”
inextricably links the uninsured to rising health care costs and premium rates for the insured.

The economic cost imposed on the nation by the uninsured is as much as and perhaps greater than the public cost of covering them...

For the full text of the issue brief, please see the PDF attached below.

Who Receives Uncompensated Care?

Health Policy — Tue, 04 Mar 2008 11:16:00 -0500

Uncompensated care (UC) is health care that is delivered, but not paid for by either a patient or a third party payer. Most UC is delivered to the very ill during or after a visit to an emergency room. In 2004, UC was estimated to total $41 billion dollars.

This issue brief finds that individuals with incomes above 200% of the Federal Poverty Level (FPL) or $41,300 for a family of four and people living at or below the poverty level account for two-thirds of all UC in the U.S.

Three policy solutions may be necessary to reduce UC costs:

More effective outreach initiatives to enroll low-income Americans who are eligible for subsidized coverage in order to minimize the number of people who are currently missed by the system.
Sliding scale subsidies to help make health insurance more affordable for all Americans.
When health insurance is affordable, a purchase requirement or “individual mandate” to address the “free rider” problem and ensure all Americans pay their share for health care.

For the full text of the issue brief, please see the PDF attached below.

Myths About the Individual Mandate

Health Policy — Mon, 18 Feb 2008 10:50:00 -0500

Requiring individuals to purchase health insurance -- the so-called “individual mandate” -- is the subject of much debate. In its latest fact sheet, the Health Policy Program addresses some of the most popular myths about an individual mandate and explains why requiring individuals to purchase health insurance is a necessary component of any plan that seeks to cover all Americans.

Myth: If individuals choose to be uninsured, there are no consequences to society.

Fact: The uninsured increase the price of premiums for the insured and drive uncompensated care costs that taxpayers and health care providers must absorb. They place undue strain on Emergency Departments and other sources of care that impact all of us.
Myth: An individual mandate would force families to forgo other necessities in order to buy health insurance.

Fact: All existing mandate-centered reform plans include subsidies for low-income people to ensure affordability, and insurance reforms to make health insurance markets work for all Americans.
Myth: An individual mandate is not enforceable.

Fact: Switzerland and the Netherlands have successfully enforced an individual mandate to purchase health insurance. Similarly, some American states have achieved close to 100 percent compliance with a mandate to purchase car insurance.
Myth: An individual mandate is not necessary to ensure that all Americans have health insurance coverage.

Fact: Many Americans who are eligible for public insurance at little to no cost do not enroll, while others who could afford private health insurance choose not to buy. This suggests a mandate is necessary to approach 100 percent enrollment.
Myth: An individual mandate will stifle market competition.

Fact: An individual mandate, coupled with insurance market reforms and subsidies, would make markets work more effectively and efficiently. By reducing the risk of adverse selection, an individual mandate would force insurers to compete based on price and quality, not underwriting and marketing.

For the full text of the fact sheet, please see the PDF attached below.

Why Does Health Insurance Matter?

Health Policy — Mon, 04 Feb 2008 14:06:00 -0500

Presidential candidates are travelling across the nation touting their respective plans to reform our nation’s struggling health system. Whether you are a Democrat or Republican, do you ever wonder: why all the fuss about health coverage? Campaign rhetoric aside -- why does health insurance really matter?

The New America Foundation today released “Why Does Health Insurance Matter?” This short policy brief outlines the societal, economic, and health-related consequences of the uninsured.

“Lack of health insurance negatively affects the overall productivity of society, the stability of emergency care, and the health and financial well-being of individuals,” said Len Nichols, Director of the Health Policy Program at the New America Foundation. “In addition, rising health care costs are one of the most serious economic challenges facing our nation,” Nichols continued, “but because the uninsured are inextricably linked to the cost of care for the rest of us, we cannot solve the cost problem without covering the uninsured.”

“Why Does Health Insurance Matter?” is part of an ongoing series of New America Health Policy Program policy briefs, which also includes: “Who Are The Uninsured?” and “Health Debate Reality Check: The Role of Individual Requirements.”

To read the brief, click the PDF file below.

Who Are The Uninsured?

Health Policy — Mon, 10 Dec 2007 19:01:00 -0500

In the U.S., what region of the country has nearly half of all uninsured Americans? Are they employed? What is their economic background? How about their race? Who are the uninsured? To find out, click here.

To view Health Policy Program Director Len Nichol's related presentation, click here.