WASHINGTON – A recent report by the Urban Institute pokes holes in the belief that many uninsured Americans are in the middle class.
The report, funded by the Robert Wood Johnson Foundation, found that 56 percent of the 44.6 million uninsured Americans simply can’t afford health insurance.
Urban Institute researchers used an income triple that of the federal poverty level to determine affordability of healthcare coverage.
John Holahan, the report’s co-author and director of the Urban Institute Health Policy Center, believes that the burden falls squarely on the shoulders of taxpayers, with federal and state governments kicking in with tax credits and other subsidies.
“It’s too big a problem for health plans to take on,” he said. “It’s not sustainable (for them). Business doesn’t work that way.”
That said, Holahan pointed to healthcare reforms undertaken in Massachusetts by outgoing Gov. Mitt Romney. Massachusetts’ mandatory universal healthcare law requires that all citizens have health insurance by July 1, 2007.
“A fully insured population is the cornerstone to controlling healthcare costs,” Romney said in his keynote address at the June 2006 America’s Health Insurance Plans’ annual meeting.
The dominant insurer, Blue Cross Blue Shield of Massachusetts (BCBSMA), took a lead role in helping to shape healthcare reform by donating $50 million towards the commonwealth’s electronic records initiative.
Katie Hewell, spokesperson for BCBSMA, pointed out that healthcare affordability, access and quality are “inextricably linked.”
“Increasing access by improving affordability cannot happen until there is a quality transformation of the safety and effectiveness of the healthcare system overall,” she said.
“One thing we can agree on is that healthcare is becoming more and more unaffordable for many Americans,” said Mary Thompson, spokesperson for Blue Cross Blue Shield of Tennessee (BCBST). “That said, we are devoted to finding solutions to deliver affordable and quality care to our millions of members. Our approach is about transforming the delivery of care and impacting outcomes instead of just processes.”
Cigna HealthCare offers coverage to uninsured people through an employer-based benefits model. This past summer, Cigna acquired Star HRG, a provider of voluntary, limited benefit, low-cost health plans for those who are working and uninsured, allowing the company to extend coverage to employees who may not be able to afford coverage.
“Our approach combines a pricing structure in line with workers’ hourly wages and a high-touch consultative service model to ensure workers understand what to expect from the plan,” said Eric Motter, vice president of marketing and product development. “Are limited benefits the entire solution? No, but they can improve access to affordable coverage...”