We cannot get our economy back on track without repairing the American health care system.
Health care reform is not just a moral imperative, but also an economic necessity. In 2007, the
U.S. economy lost as much as $207 billion as a result of the poor health and shorter lifespan of
the uninsured.
Skyrocketing health care costs add to families' already overwhelming burden, threatening their health and financial security. We can do better. Solving America's health care crisis will improve quality of care, reduce costs and make businesses more competitive.
The urgent need for reform is more apparent now in Tennessee than ever. In the past eight years, health care premiums for family coverage have risen more than 5 times faster than wages. With 7.9% unemployed, many families are at risk of losing their health coverage. The message is clear: Tennessee's families urgently need Congress to take direct action on health care reform.
Supporting Facts
- Health Insurance premiums in Tennessee increased by 61.9% from 2000 to 2007, while median earnings only increased a mere 12.1%. The median yearly wage in 2007 for Tennessee was only $25,639, but the average health care premium for a family was $10,606. This means that premiums grew 5.1 times faster than wages.
- In Tennessee, approximately 1,301,000 non-elderly people spent more than 10% of their pre-tax family income on health care costs in 2008. 87% of those people have insurance, but are underinsured. 1,133,000 Tennessee residents with insurance spent more than 10% of their pre-tax income on health care costs, and 333,000 spend more than 25% of their income.
- By 2016, projections show that Tennessee families will have to pay close to $19,400 for health care or over 44 percent of median household income. This would represent a 70 percent increase over 2008 levels.
- In addition, more and more Tennessee residents have been forced into the exorbitantly expensive individual market, as unemployment reaches massive heights. As of December 2008, 241,183 Tennessee residents were unemployed. That reflects a loss of almost 90,000 jobs statewide last year alone, increasing the state unemployment rate by over 2.9 percentage points.
- If the state keeps losing jobs at the rate it did last year, 384,425 people in Tennessee will be unemployed by 2010. 48.35% of insured Tennessee residents depend on their employers for their health insurance. If nothing is done to stem the economic downturn and reform our health care system, 69,259 Tennessee workers will lose their current health coverage, meaning that 28,684 more people will likely enroll in COBRA. That leaves 40,611 people who will have to enroll in Medicaid, fend for themselves on the private market, or become uninsured.
- This year Tennessee faces a $1.4 billion budget shortfall. As of 2007, 29% of all state spending has gone to Medicaid and SCHIP. $7.5 billion went to spending on Medicaid alone.
- As of 2007 there were already 126,186 uninsured children in Tennessee, and more than 714,361 uninsured adults. 276,378 of uninsured adults in Tennessee also live below the Federal Poverty Line. Tennessee's economy lost as much as $3.57 billion because of the poor health and shorter lifespan of the uninsured in 2007. That equates to $4,000 per uninsured Tennessee resident.
- Of the top 10 employers in the state of Tennessee, 3 of them are Healthcare Providers. According to the US Census, 209,949 individuals work in the Heath Care Sector in the state & make an average of $3,886 per month, which accounts for $1.0 billion in wages per month.
The health of the American economy cannot improve without addressing the healthcare crisis. Building on the existing healthcare system, quality, affordable healthcare can be guaranteed to every American. It's the reform truly needed to rebuild Tennessee's economy.
