Iowa estimated to recover millions now spent on care for uninsured

The U.S. Department of Health and Human Services has released new state-by-state projections of the impacts of passage or failure of the Democrats’ sweeping health care reform package.

According to HHS Secretary Kathleen Sebelius, the projections demonstrate that “the health care status quo is not an option for our states.”

On a conference call this morning with reporters, Sebelius acknowledged that the Republican Governors’ Association has been critical of both congressional bills for what they deem to be “unfunded mandates.”

“I did have a conversation with a lot of my former colleagues about the issues on Medicaid expansion, and I would tell you that, by-and-large, governors are pleased with the recognition in Congress — in both the House and Senate bills — that adding additional unfunded mandates is problematic,” she said, noting that both bills added additional monies so that states could meet the new reforms.

“I think what is important, in addition to looking at the expansion of various programs and how much money is coming back to the states … is that the cost of doing nothing is a huge burden on states. It’s not only a burden that they pick up in terms of insured costs, and a sicker workforce and less preventative care, but it is a burden they pay for directly in state employee premiums.”

Researchers estimate that uncompensated care costs Iowa providers $935 million each year, a figure that is partially subsidized by the state. State premiums, according to the report, would be reduced as coverage is expanded and uninsured and uncompensated costs decrease.

The Department asserts that if nothing is done, by 2019 the number of uninsured people will grow by more than 30 percent in 29 states and by at least 10 percent in every state. In addition, the amount of uncompensated care will more than double in 45 states, and businesses in 27 states will see their premiums more than double and fewer people will have coverage through employers.

The reports, which are based on the U.S. Senate version of health care reform, project that if the bill is signed into law, Iowans could see:

  • 302,000 residents who do not currently have insurance and 171,000 residents who have nongroup insurance gaining affordable coverage through the health insurance exchange.
  • 187,000 residents qualifying for premium tax credits to help them purchase health coverage.
  • 505,000 seniors receiving free preventive services.
  • 89,700 seniors experiencing their brand-name drug costs in the Medicare Part D “doughnut hole” halved.
  • 48,600 small businesses being helped by a small business tax credit to
    make premiums more affordable.

Additional report information, including breakdowns of estimated benefits for Iowa families, senior citizens, small businesses and other entities can be read on the government’s health reform Web site.