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

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

New America in the News:

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 major reform efforts. . .

Additional changes are needed, though, to improve outcomes and curb costs, Nichols said. Those changes include market reforms to ensure all people have access to health insurance, as well as improvements in the health care delivery system through comparative effectiveness research, consistent use of best practices, and information technology.

Ending employer-based financing must be accompanied by an improved delivery system because compared to foreign companies, U.S. firms are "still paying a bigger chunk of a bloated bill," Nichols said.

The market reforms would include plans for guaranteed issuance, as well as subsidies to ensure that all those seeking insurance can pay for it, according to Elizabeth Carpenter, a senior program associate for the health policy program.

The New America Foundation describes itself as "a nonprofit public policy institute that was established through the collaborative work of a diverse group of public intellectuals, civic leaders and business executives."

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

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… more

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

What Hill Staff Should Know About Health Care

Health Policy — Tue, 04 Mar 2008 10:59:00 -0500

Our current health system is not sustainable. It leaves many Americans without access to quality, affordable health coverage, weakens the ability for U.S. businesses to compete internationally, and threatens the stability of our economy.

There are many ways that we could achieve a system of coverage for all Americans. However, in order to be economically and politically sustainable over time, any comprehensive reform plan must:

Cover all Americans

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.

Control health care cost growth

No health reform proposal will be sustainable over… more

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… more

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… more

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.

John Chafee’s Work for Health Reform

Articles — Mon, 10 Sep 2007 13:13:00 -0400

Last month, the Census Bureau estimated that 2.2 million people became uninsured in 2006.

With rising numbers of uninsured Americans, and the administration’s decision to wage war against children’s health insurance in hopes of stifling comprehensive health reform, we would be remiss not to examine the last time our nation seriously contemplated a system of coverage for all Americans.

In March 1993, Sen. John Chafee (R-R.I.), the leader of a bipartisan group of senators trying to strike a deal on health-care reform, made a plea to his colleagues on the Senate floor, “We owe it to ourselves and to the… more