Hidden Costs Of The Uninsured

(AP)  The poor health and premature deaths of people without health insurance costs the nation between $65 billion and $130 billion annually, says a study by the Institute of Medicine.

The Institute, an arm of the National Academy of Sciences, estimated that 41 million Americans lack health insurance, up from the 38.7 million without coverage reported by the Census Bureau in 2000.

As Congress debates the costs and benefits of increased health coverage, it should consider the estimated savings from improved health that could be realized through insurance protection, said Mary Sue Coleman, president of the University of Michigan and head of the committee that prepared the report.

The study is one of a series of reports on the impact of the uninsured in America by the Council. Previous studies have found that:

Millions of Americans lack insurance and the number is likely to increase in the weak economy. Most uninsured are in working families.

People without health insurance are sick more often and die sooner than the insured.

Lack of insurance by even one person can affect the entire family because of the stress of assisting that person through illness.

Paying for uncompensated medical care for the uninsured puts a strain on entire communities and can affect the quality of medical care for everyone.

In the latest study the council used a concept called "health capital" to gauge the hidden costs of a lack of insurance. This is the first effort to estimate these costs, the committee said.

Health capital represents in monetary terms the value of an individual's health over future years of life, said the report. The assessment includes: earning potential, children's physical and mental development and the subjective value of being alive and healthy.

The committee estimated that the improved health value uninsured persons would gain by having insurance was between $1,645 and $3,280 annually. That amounts to a total cost of between $65 billion and $130 billion for the entire uninsured population.

The committee also estimated that it would cost $34 billion to $69 billion to provide the uninsured with the health services they would need if they used the same types of service as people who have insurance.

The committee plans one more report in the series, in which it will offer suggestions for dealing with the problem of lack of insurance.


By Randolph E. Schmid