Washington, D.C. – A report released today by the consumer health organization Families USA spotlights a growing crisis among insured families, as rising health care costs devour a growing portion of their pre-tax income.
In the United States, 64.4 million people under age 65 are in families that will spend more than 10 percent of their pre-tax family income on health care in 2009, and 82.6 percent of those people are insured—an increase of 22.7 million such people since 2000.
In Iowa alone, 728,000 people under age 65 are in families that will spend more than 10 percent of their pre-tax family income on health care in 2009, and 90.7 percent of those Iowa families have insurance. In addition, there are 206,000 Iowans in families that will spend more than 25 percent of their pre-tax income on health care in 2009.
“As our findings make clear, high health care costs are not just a problem of the uninsured,” Ron Pollack, Executive Director of Families USA, said today. “More and more families with insurance are affected by rising health care costs, and, for many, the burden of these costs is becoming too great to bear.”
That this problem is affecting more and more families is an essential element of this 2009 report, an update of a 2007 Families USA report that was the first of its kind to document these costs on a state-specific basis. The report shows that the number of insured people in families paying 10 or 25 percent of their pre-tax income on health care has climbed dramatically in Iowa, a symptom of the runaway costs plaguing the U.S. health care system.
The report reveals:
• 728,000 non-elderly Iowans are in families that will spend more than 10 percent of their pre-tax income on health care in 2009.
• Between 2000 and 2009, the number of people in families spending more than 10 percent of their pre-tax income on health care will have increased by 289,000, or 65.9 percent.
• More than nine out of 10 people (90.7 percent) in families spending more than 10 percent of their pre-tax income on health care are insured.
• 660,000 non-elderly Iowans with insurance are in families that will spend more than 10 percent of their pre-tax income on health care in 2009.
The report also looks at the number of people in families that spend more than 25 percent of their pre-tax income on health care:
• 206,000 Iowans are in families that will spend more than 25 percent of their pre-tax income on health care in 2009.
• Between 2000 and 2009, the number of people in families spending more than 25 percent of their pre-tax income on health care will have increased by 91,000.
• Nearly nine out of 10 people (86.4 percent) in families spending more than 25 percent of their pre-tax income on health care are insured.
• 178,000 Iowans with insurance are in families that will spend more than 25 percent of their pre-tax income on health care in 2009.
As the Families USA report demonstrates, hundreds of thousands of Iowans are in families that face high health care costs. A number of factors have driven this phenomenon. First and foremost, health insurance premiums are increasing. As premiums rise, employers are forced to make tough decisions, particularly in this recession, about the coverage they offer to their employees. Some drop coverage, others increase the share of the premium that employees must pay, and more offer insurance that covers fewer services and/or requires high out-of-pocket costs. As a result, Iowa families must shoulder a greater portion of health care costs.
“Iowa families are hit hard in the wallet because of skyrocketing health costs,” Pollack said. “As a result, Iowans are spending much larger portions of their family incomes on health care—and health care is becoming less and less affordable.
“The growing burden of health care costs on Iowa families is a clear signal that health care reform is overdue,” Pollack said.
"Far too many Iowans are spending far too much of their income on health insurance," said Senator Harkin. "These findings are enlightening but also very disturbing, and they just point up the urgency of getting health care reform done this year, as President Obama is determined to do— and as I am determined to do."
"Health care coverage should be affordable and accessible," said Congressman Boswell. "As this report demonstrates, hundreds of thousands of Iowans face high health care costs. As I travel around the district, I hear from constituents about high insurance costs and the burden this creates for families.
"Iowans should not have to choose between paying for health insurance or paying their mortgage," Boswell said.
"I want to thank Families USA for their important research into health care, and to Ron Pollack for continuing to push this issue and bring it the attention it deserves. During these tough economic times, rising costs of health care are placing an undue burden on our families. Our current health care system is broken, and we need comprehensive health care reform, not a band-aid. In order to ensure that we can give more people quality, affordable health care, we need to listen to the working families of Iowa, as well as our health care providers and professionals," said Congressman Loebsack.
"I sit on the Health, Education, Labor and Pensions Subcommittee, and right now, we are looking at a lot of options for reform, listening to a lot of recommendations, and thoughtfully examining our options. The data on health care reform show that there is indeed a cost of doing nothing, and I remain committed to working in Congress to ensure that we can increase access to quality, affordable health care for all Iowans."
