Health care report: Middle-class Coloradans slipping through the cracks

The wealthy are likely to have access to health insurance or can pay for their own coverage. The poor can find relief through government programs like Medicaid.

It’s America’s middle class that’s falling through the cracks faster than any other group, according to a report released today by the Robert Wood Johnson Foundation, a nonpartisan independent philanthropy that focuses on health care issues.

The number of uninsured middle-class Americans grew 2.4 percentage points from 2000-08, and that’s before the worst of the nation’s financial crisis took hold. The growth of uninsured middle class Coloradans outpaced the national rate, jumping 4.8 percentage points in the same period, according to the report “Barely Hanging On: Middle-Class and Uninsured.”

“The numbers next year are going to be really scary,” said foundation spokesman Nick Ferreyros.

In raw numbers, about 13 million middle-class Americans — those making about $45,000 to $85,000 — were uninsured in 2008, compared with about 10.5 million in 2000. In 2008, about 232,000 middle class Coloradans were uninsured, compared with 172,200 in 2000.

The report says several factors are to blame: Fewer people are getting insurance through their employers, and many of the middle-class people who lose coverage through work don’t qualify for government insurance programs. Employees also are picking up a bigger chunk of the premiums. In Colorado, the average employee contribution for family coverage through an employer was $1,781 in 2000; in 2008, it was $4,151, according to the report.

“For middle-class families, changes in the cost of insurance far outweigh changes in income,” foundation President and CEO Risa Lavizzo-Mourey said in a news release. “That means a bigger piece of the household budget must go to insurance, or families have to go without coverage, delay needed care and face bankruptcy if anyone in the family gets seriously ill.”

Memorial Health System is seeing more middle-class families who have jobs but no insurance, or insurance that saddles them with astronomical deductibles and co-payments, said Chief Financial Officer Michael Scialdone.

“When people find they have a $5,000 co-pay or deductible, it’s very difficult to meet,” he said. “Because of that, we have seen a lot more middle-class types of people who have much higher financial responsibilities under their insurance ... and we do see people having issues trying to meet those.”

Memorial created a more liberal payment plan to accommodate those who can’t afford their deductibles and co-pays.

“We’re finding more and more people in the middle class having to take advantage of that,” Scialdone said.

Earlier in the week, the foundation released a report by researchers from the nonprofit nonpartisan Urban Institute that warns of the consequences of failing to enact any health care reform.

In a worst-case scenario, researchers found, the number of uninsured Americans would increase from 49.4 million in 2010 to 67.6 million in 2020. In the best case, the number would rise to 57.9 million by 2020.

Researchers also said premiums for family policies will hit $19,500 by 2020 in a best-case scenario and $25,600 in a worst-case.

“Under any scenario, the analysis shows a tremendous economic strain on individuals and employers of all sizes,” the report said.

Colorado by the NUMBERS

2000/2008

• Total uninsured: 172,000/ 232,000

• Number with employer-sponsored insurance: 899,900/ 789,200

• Number of people with government-sponsored insurance: 128,900/ 146,200

• Number of people who purchased their own insurance: 50,800/ 78,200

• Percent of private-sector employees in businesses that don’t offer insurance: 9.7/ 14.6

(Figures are for those earning about $45,000 to $85,000)

Source: “Barely Hanging On,” Robert Wood Johnson Foundation

To read more go to rwjf.org.

Click here for the full report of “The Cost of Failure to Enact Health Reform: 2010-2020."