Report reflects Kansans’ insurance struggles

Governor to seek ways to ease pricey premiums

? Skyrocketing insurance costs are forcing many Kansans to choose between health-care coverage and other needs, according to a report released Tuesday.

In 2003, Kansas families paid an estimated $8,794 for health-insurance premiums, an increase of $2,557, or 40 percent from 2000, the Kansas Action for Children study showed.

“These families are having to choose between basic necessities such as food and health care because of the rising costs and limited access that have put preventative services out of reach,” said Gary Brunk, executive director of KAC.

The study recommends the state do a better job of enrolling low-income children who are eligible for already existing health programs, such as Medicaid and HealthWave.

That recommendation is one of many being considered in Kansas and elsewhere as states experiment with ways to make health-care coverage more affordable.

In Kansas, Gov. Kathleen Sebelius has said health insurance reform would be a top priority, equating coverage with homeland security.

“To me, one of the issues of security is domestic security,” Sebelius said. “The biggest cause of bankruptcy is a health incident. The single thing people worry about when losing their job is also losing their health insurance. So, I think taking steps in that direction is really important to stabilizing our economy.”

Sebelius has said she will unveil a major initiative but so far has refused to discuss details publicly. The plan is still in the works and probably will be introduced this fall, aides said.

But governors and legislatures in many other states have already started new programs.

<i>” border=”0″/> Governor to juggle school, health care issues in 2005 (09-13-04)</a><a href=</i>” border=”0″/> Health care costs climb 11.2 percent (09-10-04)</a><a href=<i>” border=”0″/> Record Medicare premium jump coming (09-04-04)</a><a href=</i>” border=”0″/> Sebelius promises increased health insurance (08-28-04)</a></td>
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<p>“There seems to be no single consensus on which solution will work best,” said Richard Cauchi, health program director at the National Conference of State Legislatures. “We see states going in different and distinct directions.”</p>
<h3>Growing problem</h3>
<p>Both nationally and in Kansas, the lack of health coverage is an increasing problem.</p>
<p>A record 45 million Americans lack health insurance. For those covered through work, premiums jumped 11.2 percent this year, the fourth straight year of double-digit growth and five times the rate of inflation and wage growth.</p>
<p>In Kansas, a recent survey found nearly one in four Kansans under the age of 65 lacked health insurance.</p>
<p>Without a federal solution and amid increasing costs, officials in states across the country are taking the lead.</p>
<p>The state of Maine has launched a plan called Dirigo — the state’s Latin motto, which means “I lead” — that will provide health care to anyone who wants it at reduced cost. It is being started with one-time federal funds, expected cost savings from other administrative areas and voluntary contributions from employers who want to cover their workers.</p>
<p>In California, voters on Nov. 2 will decide the fate of a law that requires companies with 200 or more employees to buy health insurance for their workers and their families by 2006; businesses with 50 to 199 employees would have to provide coverage starting in 2007.</p>
<p>Connecticut, Florida, Louisiana and Maryland have passed state tax exemptions similar to the new federal tax exemptions for health-savings accounts that were part of the new Medicare law, Cauchi said.</p>
<p>Other states are looking at reducing benefit requirements in insurance policies or declaring a moratorium on mandates, while others are expanding their public employee insurance plans to take in smaller employers.</p>
<h3>Reduce administration</h3>
<p>Sebelius has complained that administrative expenses eat up too much money in the care of Kansans. About $3 billion of the $12 billion spent annually on health care is spent on paperwork, she said.</p>
<p>“There are a bunch of initiatives that we can tackle because the state is such a major purchaser. We can help to drive quality and really help to put a dent in the administrative cost,” she said.</p>
<p>Cauchi said reducing administration costs was the goal of many of the state reforms. Medicare, he said, is a good example of how a large system can be run while holding administrative costs to 5 or 6 percent.</p>
<p>Other reforms include promoting disease prevention through good nutrition and physical activity, and reducing prescription-drug expenditures by joining multistate purchasing pools.</p>
<p>Sebelius said many of her initiatives wouldn’t necessarily require more money.</p>
<p>“A lot of it is information and issues that people can work on really in their own situations. We need to begin the discussion,” she said.</p>
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