Cost of uninsured could affect businesses

The Congressional Budget Office estimates that nearly 60 million people lack health insurance at some point in the year. But the number of people uninsured for the entire year is much lower, estimated to be between 21 and 31 million, according to a report by the National Business Coalition on Health.

At any given time, an estimated 40 million people are uninsured.

The problem of the uninsured is a hot topic as politicians gear up for the 2004 elections, floating a variety of plans to tackle the problem. Understanding why people become uninsured and how long they remain uninsured is vital to solving it.

The report "Changing the Role of the Stakeholders Covering the Uninsured" outlines why this is one problem business leaders can't ignore.

"We are concerned the public sector will turn to either state or federal mandates in an effort to expand coverage for the uninsured, resulting in exacerbation of the problem," said Becky Cherney, chairman of the board of NBCH. "Mandates will increase the cost of providing benefits, especially for small and emerging business."

The NBCH report outlines a research-based briefing on the uninsured from the perspective of employers, consumers and policy makers. It includes presentations by Elliot Wicks, Economic & Social Research Institute; Debra Ness, National Partnership for Women & Families; and Ray Werntz, president of the Consumer Health Education Council.

Cherney said the uninsured often rely on more expensive emergency room services when they need health care, instead of seeking earlier, less costly treatment.

"Those costs are shifted to the private sector, resulting in higher coverage costs for employers," she said. Employers know that providing coverage improves the health and productivity of the work force, increases retention and reduces absenteeism, "but not all employers are convinced they should become involved in this issue," she said.

The NBCH report details research on the uninsured and the problem's impact on business. It also outlines 13 proposals to solve the problem put forward by health care policy experts proposals that have since become the basis of political approaches proposed by the slate of 2004 presidential candidates.

"We believe a policy to expand coverage must include serious reform mechanisms with the real probability of reducing the rate of health care cost increases," Cherney said. "Anything else will ultimately undermine the effort to expand coverage and will threaten continued coverage for those who have it now."