Real Voices, Real Pain

The U.S. Census Bureau estimates 729,000 Missourians were uninsured in 2007. Nearly 75 percent of Missouri’s uninsured are in a family with at least one full-time worker while 25 percent of the nation’s uninsured are from middle-income families.

In addition, a growing number of Americans are underinsured. These individuals and their families are covered by policies that fail to provide comprehensive benefits, exclude pre-existing conditions or demand a high deductible before receiving coverage.

“I am a teacher. My insurance categorically excludes all diagnostic imaging except X-rays. I can’t get different insurance — this is all my employer offers.

My mother has for years been paying $700 a month for only catastrophic insurance. Why? Because she got sick in her 40s, after which she was excluded from any decent coverage. Next month, she will be eligible for Medicare and pay about $100 per month for
comprehensive care.”

(Letter to the Editor, The Kansas City Star, August 6, 2009)

In 2008, the average cost of a family health insurance policy in Missouri was more than $13,000. According to the U.S. Census Bureau, the median household income in Missouri in 2007 was $45,012. View Data

In 2008, the average cost of a family health insurance policy in Missouri was more than $13,000. According to the U.S. Census Bureau, the median household income in Missouri in 2007 was $45,012. Throughout the last decade, family premium costs for health insurance in Missouri have increased by 92 percent. During the same period, real personal income in Missouri grew by only 2 percent annually.

“Right now, my health insurance premiums are the highest single deduction from my paycheck — much more so than taxes. Combine these upfront costs with what I have to pay on out-of-pocket, co-pays and deductibles, this makes health care more expensive than all my other paycheck deductions combined! With this in mind, what I now pay for health care insurance has increased exponentially, year after year and covers less each year. At the present rate, I expect private health care to soon become too expensive to maintain. If others are experiencing what I am, and I suspect they are, private health care insurance will price itself out of existence in much less than 10 years.”

(Letter to the Editor, Springfield News-Leader, July 25, 2009)

Workers at small firms and the self-employed are at a significant disadvantage when purchasing insurance in the marketplace. They lack the risk pool and bargaining power of large employers and receive few of the discounts from health insurers afforded larger purchasers. For these workers, traditional, comprehensive insurance policies can be cost prohibitive. An alternative plan such as a high deductible policy, can offer protection against catastrophic illness. However, these plans usually require a significant outlay of funds before full benefits are available.

“I am self-employed. I have paid for my individual insurance since 1993. My insurance company has never paid a claim. I received notice last week that my premium will be raised by $70 a month for a total of $427 a month. My deductible is $5,000 a year. I pay for all preventative care, well care and prescriptions. Yes, we do need health care reform. The first $5,000 that I earn each year goes to pay my health insurance. I have no dental or eye coverage — only catastrophic coverage. I am counting the days until I can rely on Medicare.”

(Letter to the Editor, The Kansas City Star, July 30, 2009)

The health care debate will continue in Congress this fall. For those in the margins of the health insurance marketplace, resolution clearly can’t come too soon.

Median Household Income For A Missouri Family

Median Household Income — $45,012

Expenses

Average annual family food costs (moderate plan) — $9,568
Mortgage, Missouri median home price with 30-year fixed rate — $10,934
Average annual utility costs (based on household income) — $1,924
Car payment, small sedan with 60 months at 5.7 percent — $3,783
Average costs to drive per vehicle annually (excludes loan payments) — $9,641
Other necessities, including clothing, hygiene products, educational materials — $2,532
Average child care cost (per child) in Missouri — $4,611
State and local use taxes — $900

 

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