Millions in N.C. lack health plan

Study: 1 in 3 of people under 65 did without insurance in '07 or '08

By: Richard Craver | JOURNAL REPORTER
Published: April 08, 2009

More than one out of three North Carolinians younger than 65 went without health insurance at some point in either 2007 or 2008, according to a study released yesterday by Families USA.

The health-advocacy group, based in Washington, also said that 75 percent of the state's 2.8 million uninsured residents younger than 65 were not covered for at least six months. Medicare and Medicaid typically provide insurance cover for people age 65 and older.

"The huge number of people without health coverage in North Carolina is worse than an epidemic," said Ron Pollack, the executive director of Families USA.

"At this point, almost everyone in the country has had a family member, neighbor or friend who was uninsured -- and that's why meaningful health-care reform can no longer be kept on the back burner."

The Families USA study is the latest attempt at trying to measure how many people in North Carolina and the nation lack health insurance. The national rate was 33 percent of Americans younger than 65.

A separate study released March 25 by the N.C. Institute of Medicine found that there are about 1.8 million uninsured residents in North Carolina -- up by 322,000 in the past 18 months.

Meanwhile, a study by the Kaiser Family Foundation found that 17 percent of all North Carolinians, or 1.7 million, were considered as uninsured in 2006-07. The Kaiser survey also found that 20 percent of state residents younger than 65 went without health insurance.

"Experts and policymakers have multiple agendas in health reform," said Drew Altman, the president and CEO of Kaiser. "But when half the public reports skimping on care because they can't afford it, it's very clear that what the public wants most from health reform is relief from health-care costs."

The Families USA study found that nearly 80 percent of North Carolinians going without insurance had at least one family member who worked.

About 60 percent of those individuals and families in North Carolina with incomes of less than $42,400 -- which is twice the poverty line for a family of four in 2008 -- went without health insurance at some point in 2007-08.

"These startling numbers clearly document the seriousness of the problem and demonstrate what happens when a problem is ignored for too long," Pollack said.

"It's important, however, to note that Congress and the president have begun to address this serious issue and have made a down-payment on comprehensive health-care reform by extending coverage to more than 4 million uninsured kids" through the State Children's Health Insurance Plan.

Although affordable health insurance has been discussed for years, it has become a hot-button issue in the nearly three months since the Obama administration took over. It was the focus of a White House forum on health-care reform that was held at N.C. A&T State University on March 31.

At that event, Gov. Bev Perdue and a chief Obama administration aide, Nancy-Ann DeParle, said that the rising cost of health care is becoming such a burden to residents, employers and communities that it's unlikely that the economy can expand anytime soon without major reform.

The recession is playing a significant factor in the number of uninsured North Carolinians, said Steve Graybill, a hospital consultant and health-care analyst with Mercer.

"Some people are choosing not to take Cobra insurance when they get laid off, hoping to have a job by the time they would really need such health insurance," Graybill said. "Other employees have chosen not to make a priority out of health insurance through an employer. Some employers' health-insurance plan has become too costly from some of its workers to share in its costs.

"It will be interesting to watch the health-insurance enrollment period for 2010,'' Graybill said. "Will some employers just pass on their increasing costs to employees, or will some try to stay the course with a smaller increase in hopes of retaining the bulk of their work force when the economy improves?"

■ Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com.