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Increasing Unemployment
Contributing To Rising Ranks Of Uninsured
The rising rate of unemployment has contributed to an increase
in
the number of uninsured people because workers who lose their jobs
often lose their health benefits, the New York Times reports. According to
the Bureau of Labor
Statistics,
about 10.3 million U.S. residents were unemployed in November, an
increase of 36%, or 2.8 million people, since January of this year, and
71%, or 4.3 million people, since January 2001. Public health experts
estimate that for every one worker who loses health coverage, at least
one child or spouse with coverage under the same policy also loses
insurance.
The increasing number of uninsured because of job
losses "adds urgency" to efforts by lawmakers who are pushing for
universal health care, according to the Times. Sen.
Sherrod Brown (D-Ohio) said, "This shows why -- no matter how bad the
condition of the economy -- we can't delay pursuing comprehensive
health care," adding, "There are too many victims who are innocent of
anything but working at the wrong place at the wrong time."
Harvey Brenner, a professor of public health at the University of North Texas
and Johns Hopkins
University,
said that historically during recessions, with declines in national
income and increases in unemployment, "you often see increases in
mortality from heart disease, cancer, psychiatric illnesses and other
conditions." In addition, hospitals also are facing pressure, as
economic downturns historically mean a decline in revenue and an
increase in the number of uninsured people seeking care, especially in
emergency departments. Erin Al-Mehairi, a spokesperson for Samaritan
Hospital
in Ashland, Ohio, said, "We have seen a significant increase in
patients seeking assistance paying their bills," adding, "We've had a
40% increase in charity care write-offs this year over the 2007 level
of $2.7 million."
The Times profiled Archway
& Mother's Cookie,
which closed its factory in north central Ohio this fall, leaving about
275 people without a job and their "excellent health benefits" (Pear, New
York Times, 12/7). The Wall Street Journal also
profiled the closing of the company and employees' resulting loss of
health coverage. According to the Journal,
"In some cases, people who are laid off can maintain their group health
benefits under" COBRA, but "that is not an option for former Archway
employees because their group health plan no longer exists" and the
employees "generally cannot afford to buy insurance on their own"
(Dugan, Wall Street Journal, 12/6).
Small Businesses Cutting Benefits
Many small businesses
are cutting employee benefits and reducing or eliminating their
contributions to health care insurance and retirement plans in an
attempt to remain in business or avoid layoffs, the AP/Bergen
Record reports. Some companies also are shifting
health care costs by switching employees to high deductible health
plans.
2008 MediLexicon International Ltd
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