Hispanics Need Health Insurance Reform

The debate over medical health reform is divided into warring camps as to whether we should or should not keep the present system.

For the Hispanic community, lack of reform has grave consequences.

According to the U.S. Census Bureau, of the 45 million uninsured in the country, 15 million are Hispanic. There are 2.5 million U.S. Hispanic-owned businesses, the majority classified as small and family-owned.

The U.S. Hispanic Chamber of Commerce reports that 52 percent of Hispanic business owners cannot afford group health coverage for their employees.

The costs tell the story.

According to the Kaiser Foundation, in 1999, the average health insurance plan for a family had an annual cost of $5,790 with an employer contribution of $4,247 and employee payment of $1,543.

By the end of 2008, the cost had risen 117 percent to an average of $12,679, with the split being $9,325 employer contribution and $3,354 for the employee.

It should not be difficult to understand why a small business of whatever ethnic or racial ownership cannot afford to provide the coverage, as these premiums are on top of other costs added to payroll, such as workers’ compensation, Social Security employer contribution, unemployment insurance, etc.

For an employee making $8 to $15 an hour before deductions and supporting a family of three or four, taking $1.61 an hour ($64.40 a week) is a hefty chunk on top of other deductions.

In addition, unless the employer offers sick days with pay, a further employer cost, both the employer’s and employee’s hourly contribution rises as the premium is a fixed cost, unlike other deductions based on percentage of wages.

The employer is deprived of the worker’s output when out sick and the employee without those wages, but both are obligated to pay the fixed premium.

Bad News

The bad news doesn’t stop there. Policies have deductibles to be met before coverage kicks in, and there are co-payments for doctor visits, hospital daily stays, medicines and supplies.

All these can add up to hefty additional costs in far too many cases, driving lower and middle income families into bankruptcy. Small wonder why so many don’t seek medical attention on a regular basis and wait until it becomes an emergency, then flood emergency rooms too often at taxpayers’ expense.

It’s not difficult to understand why the sector working for large companies that pay either all or a good portion of health insurance premiums, and themselves enjoy wages that provide some surplus income above living expenses, have a difficult time understanding or sympathizing with the dilemma of those not as fortunate as themselves. To them, the status quo is fine, no need to tinker with the system.

Unfortunately, the present system and rapidly rising costs of medical services, and consequently insurance premiums, are rising at rates well above inflation. According to an analysis from the Center for American Progress, the average family premium will grow to more than $22,000 by 2019 and, in some states, will exceed $25,000, which will force even big businesses to rethink how much they will contribute. And naturally, deductibles and co-payments will also rise accordingly. At some point, this will affect those satisfied with today’s status quo.

It would be far better if both sides of the debate would stop yelling at each other with cries of doom. There is need for reform and there’s a need to address the issue with intelligence, compassion and civility.