Health Care Task Force

Health Care Information Links 2008

Comparisons of Health Care Systems

Action Steps

"Who is my neighbor?" That question may have a familiar ring as we find it posed by a lawyer in the Gospel of Luke. Jesus responds by telling the story of the Good Samaritan. Currently our health care task force is answering that same question with stories too, stories about the uninsured and the under insured. They are "taking the show on the road," so to speak. In an effort to inform parishioners about the current situation in health care and what we can do about it, the task force, with the full endorsement of the Parish Pastoral Council, has been doing 20 minute presentations for various parish groups at their regularly scheduled gatherings. The presentation includes several short dramatizations of some of the predicaments people confront as well as the following handouts which contain more detailed information.

Health Care: The Problem

The United States spends more than twice as much on health care as the average of other developed nations, all of which have universal health care. Yet in 2000 over 38 million Americans had no health insurance. It is expected that when the Census Bureau announces the number of uninsured for 2001 the number will have increased to over 40 million.

Despite the fact that we spend 60% more per capita on health care compared to Germany, which is the second most costly health care system in the world, 18% of our population has no insurance. Less than 8% of the German population is uninsured. We spend 50% more per capita on health care than Canada and 0% of Canadians are uninsured.

It would seem natural that out spending our fellow industrial nations in health care should ensure that we have the "best" health care in the world. Alas, such is not the case. The World Health Organization, as well as the US DHHS compiles data every year on measurable indicators of health in a nation. The United States ranked 23rd in infant mortality behind Canada in 15th place and Germany in 6th place. Life expectancy statistics reveal similar ironic results. Canadian and German citizens are likely to live longer than Americans (by several years in the case of females) despite the fact that they spend less per capita on their citizens' health care.

So how did we get here? Our present system of health care is a manifestation of the shortage of labor force during the post WWII era. It was easier to draw employees to one's company by offering benefits such as health care. In a tight labor market such as existed after WWII, and more recently as existed during the late 1990's, health care benefits become a carrot in the employer's armament to draw potential employees into the company. At such times, jobs that usually did not include health care benefits would have to offer them. If they did not offer health care benefits, companies would be faced with losing potential employees to rival companies that did offer health care benefits.

This use of the labor contract as the source of health care leads to insecurity by merit of the fact that one's health care has become a commodity in bargaining between labor and businesses. If the company decides not to offer the benefit of health care, the individual becomes uninsured. If the employee loses his job, he loses his health insurance.

But the reality of the uninsured in America is that fully 50% of the uninsured are employed. They are, however, in low-income jobs, which have never offered health insurance benefits. The cab driver, landscaper, gas station attendant or house painter all fall into this category. Fully a third of those people could afford health insurance if it were offered to the individual at the same rate as group policies charge per individual. This does not happen. The remaining two thirds of the uninsured could not afford health insurance even if they were able to obtain insurance coverage at group rates.

Not only do the uninsured not he equitable costs for policies compared to the insured, on an individual billing item the uninsured are charged more than the insured patient is charged. This is a result of the fact that insurance companies are able to bargain for discounts with health care providers based on the volume of patients the insurance company represents. These discounts can often be as much as 50% lower than the billed charge. The uninsured individual has no such volume purchasing power and so pays the full cost of services extended by a provider.

The uninsured are not only lacking in economic leverage, they are also less likely to be active voters, less likely to donate to political parties or lobby groups and overall, have very little political leverage even though they stand to gain the most from a change in the current health care system.

On the other side of the political power spectrum are the drug and insurance companies which stand to gain the most from maintaining the current system. The pharmaceutical industry is the single largest donor as an industry to political campaigns in the US. The political clout enjoyed by the drug industry is gargantuan. Insurance companies are similarly well connected in the federal government through highly paid, highly effective lobby groups.

But what does the average American think about providing health care to the uninsured. Fully 77% of those polled in 1998 were in agreement that all Americans should be insured. Employers also have a majority viewpoint that all US citizens should be insured and 52% of legislators in 1998 agreed that universal health care should be the norm.

So if the majority of citizens, employers and legislators agree on this issue, why isn't everyone insured? Many people believe that all citizens already have "ACCESS" to health care. Anyone can go to an emergency room right? That, to some, means everyone has "ACCESS."

This would be an acceptable resort if it weren't so ridiculous from the clinical and economic viewpoint. The old adage, "You can pay me now, or you can pay me later," is so very appropriate in this situation. Do we want to pay for the patient with diabetes and hypertension to have good ongoing care and access to medicines to control these problems or do we want to wait until she walks into the emergency room in kidney failure needing a kidney transplant of lifelong dialysis because of the effect the uncontrolled diabetes and hypertension had on her kidneys? Some might think this is a farfetched example, but in reality it is all too common: the uninsured individual encounters numerous obstacles to obtain care for chronic medical problems. Poor control of chronic medical problems can lead to catastrophic and extremely costly consequences. So ACCESS does not mean the emergency room, it means health insurance.

In reality the government already provides for 64% of health care dollars paid in this country. Private insurers and individuals pay 26% of health care expenditures. The step towards a universal health benefit therefore is not so large as many may think. In an effort to urge our legislators to once again begin a dialogue about health care, please consider support the Health Care Access Resolution (House Concurrent Resolution 99) directing congress to enact legislation by October 2004 that provides access to comprehensive health care for ALL Americans. A few additional facts, the resolution and a petition for your use follow.

Some Additional Health Care Facts:

Did you know that one in four elderly persons say that they skip doses of medication or fail to get prescriptions filled due to cost?

Did you know that as an industry, pharmaceutical companies rank number one in Fortune 500 list for profit as percent of revenue? In the year 2000 drug companies earned 17% profit on revenues. Most industry groups, including the oil industry earn 4-5% profit on revenue.

Did you know that the US government has no price regulatory rules governing the cost of a drug created with federal dollars once it is brought to market?

Did you know that in Canada, where the government regulates drug prices the cost of prescription drugs is 50% less than in the US? Forty-five pills of the usual starting dose of Prozac cost 105 US dollars in the United States and the same number of pills costs 43 US dollars in Canada. That is a difference of 59% for a drug that your tax dollars allowed to be created.

Did you know that drug companies spent 22% of revenues of marketing? In the year 2000, $16 billion was spent on drug marketing. Eight billion was spent on samples. Almost 5 billion was spent on promotion to doctors. Two and a half billion was spent on direct to consumer marketing.

Did you know that 20% of uninsured patients are students, homemakers and those in early retirement?

Did you know that the uninsured receive less preventative health care, are diagnosed in more advanced stages of disease and receive fewer medications and therapeutic surgeries?

Did you know that being uninsured increases mortality by 10-15%

Did you know that better health increases educational attainment and that better health increases earnings by 10-30%?

Do you realize that by law you have to have insurance on your car, yet there is no law in this country requiring insurance on ones health?

Did you know that 2/3 of all Americans have employer sponsored health insurance? This allows the employer to receive preferential tax treatment, pool employees to balance risk and exercise group purchasing power.

Did you know that in the year 2000 employers typically paid 75-86% of an average employees premium ($221/month for a single policy and $588/month for a family policy) passing on the remainder to the employee.

Did you know that 62% of low-income workers do not have coverage through their employer. (Low-income worker is defined as anyone who makes less than 200% of the federal poverty level which for a family of three is $26,000 because the federal poverty level for a family of 3 is $13,290.)

Did you know that 74% of those who changed insurance plans in the year 2000 did so because they changed jobs or because their employer changed plans?

Did you know that the current economic downturn could add 20 million more to the ranks of the uninsured?

Did you know that 20 million of the 41.5 million uninsured are employed in low income jobs?

Did you know that 8.5 million of the 40 million uninsured are children?

Did you know that 1 in 4 non-elderly women report delaying or going without care in the past year due to the casts of obtaining health care?

Did you know that 1 in 5 non-elderly women do not fill prescriptions because they cannot afford them?

For further information , contact the parish office at 440-946-0887.

If you have questions concerning any information contained on the Saint Noel Church Web site, contact us. Our staff will answer your questions or forward you to the appropriate individual or group.