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The California Progress Report is published by Frank D. Russo, a longtime observer of and participant in California politics.

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California Health Care Reform, Let's Hope--As Nation is Slipping Down a Slope

By Anthony Wright
Executive Director of Health Access California

The number of small employers offering health coverage to their employees slipped again to 61 percent. That's down from 69 percent at the beginning of the decade, according to Mercer Human Resources Consulting.

The survey, released today, contains a number of other sobering stats:

• Among big companies, deductibles rose by 11 percent to $473 for individuals, $1,134 for a family.

• Small company deductibles rose at a slower pace, but still tend to be higher at $872 for individuals and $1,879 for families.

• Underinsurance -- through consumer directed health plans -- rose by 5 percent

While employers are currently saving money by having more workers enroll in consumer-directed plans and shifting more costs to workers, the savings are only a short-term benefit, another human resources consulting firm has noted.

"It's critical that companies design their health care programs in a way that encourages employees to use them -- and use them wisely. Otherwise, they are essentially trading preventative care now for 'rescue care' later, which will lead to unhealthy employee populations, a decrease in employee productivity and ultimately -- higher health care costs,'' said Jim Winkler, with Hewitt's Health Management Consulting.

On that gloomy note, I really hope something happens this year.

Health Access California is a statewide health care consumer advocacy coalition of over 200 groups. This article has also been published on the Health Access Weblog.

Posted on November 20, 2007

Comments

One thing I have noted is that the looming recession hasn't yet figured into the debate over CA health care reform, specifically with reference to ABX1 1. If, as is now expected, there is a consumer-led recession that causes a spike in unemployment and a decline in consumer spending, wouldn't it be reasonable to expect an even more pronounced decline in cigarette sales tax revenue at the same time as more people lose insurance and seek public care?

In short, can the ABX1 1 model function properly in a recessionary period? Or will it provide minimal aid while still leaving millions uninsured and without access to care?

Posted by: Robert in Monterey at November 20, 2007 11:30 AM

Robert: I always appreciate your comments.

I'm not sure that cigarette sales decrease in a recessionary times--at least to any appreciable degree. The measure is funded by other sources of revenue as well.

Health care costs decline when more people have access to preventative health care.

I favor a single payer approach, but ask--what other viable improvements are there?--as we await the final language of the bill and accompanying ballot measure.

Posted by: Frank D. Russo at November 20, 2007 11:46 AM

The one plan,SB840 Kuehl, that will provide relief to consumers and taxpayers is still not getting any coverage.
Instead, the legislators and the governor are still locking the fox in the hen-house. Affordable health care insurance IS AN OXYMORON. The health care insurance industry IS the problem with health care! Single payer health care is getting the same media blackout as its national advocate, Congressman Dennis Kucinich !

Posted by: Will Tranquilli at November 24, 2007 07:02 PM

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