August 27, 2004

The Highest uninsured rate since Herbert Hoover...er, Bill Clinton?
Posted by Jon Henke

This data will be making the Democratic talking points...

A stagnant economy and rising health care costs helped push the percentage of people in the USA without health insurance last year to 15.6% of the population...
The rest of that sentence will not....
...the highest since the share hit a peak of 16.3% in 1998.
Rest assured, you won't be hearing any "worst since..." comparisons on that point.

As we've noted here often, our health care system is terribly mangled, and a change is absolutely warranted. Of course, when we say "a change", we don't mean "more government".

For future reference, though, the Census Bureau lists these stats...[formatted differently for your viewing pleasure]

Covered by private or government health insurance

2003.......83.2
2002.......83.3
2001.......84.2
2000 9/...84.8
1999 8/...84.4
1999.......83.5
1998.......82.7
1997 7/...82.4
1996.......82.9
1995.......83.2
1994 6/...83.4
1993 5/...82.9

And interesting point in all of this is that the total insured numbers for whites, blacks, and Asians are all fairly high...generally around 80%. So, where is the uninsured problem really hitting? Take a look at the Hispanic community...
Covered by private or government health insurance

2003.......67.3

And there is a dramatic discrepancy--much larger than with any other racial category--between Hispanic males and Hispanic females. Indicating? Well, it seems a large component of our uninsured problem--and the health care problems that creates--is a result of mass (and, perhaps, temporary) immigration, and not a lack of economic oppportunity.

Now, one can argue whether the number of insured people should be legislated higher--i.e., "government provides health insurance"--or whether the government should stay out of it and allow people to make their own choices.

We could argue all of that, discuss Canada, per-capita health care spending, a priori economic assumptions on efficient allocation of resources, and the number of MRI machines in Tennessee.

We could discuss all of that, and and I think we probably will over the course of the next few years. Socialized medicine is coming and, as Dan Patrick might say, we can't stop it...we can only hope to contain it.


UPDATE: Via INDC Journal, I see Prudent Politics has taken on the poverty aspect of the report.

The first thing that stands out to me when looking at this graph is that the years with the lowest number of poor were in the booming years of the 1970's.

I also noticed that a poverty rate of 12.5 percent is still one of the lowest poverty rates since 1959. Any idea why AP didn't report this?

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Comments

Something has been bugging me about the uninsured number being floated, but I hadn't put my finger on it until now. This ties the BLS household survey together with the uninsured number:

Dale alluded in his update to McQ's "Job Picture Gets Muddier" that the BLS does not correctly identify a consulting workforce as self-employed, and that the self-employment growth of 600,000+ in the last 2 years is probably larger than that. Of those who shifted to consulting contracting, how many are single? This is pure speculation, but speaking as a single 20-something (soon to be a 30-something... dammit) who hardly ever requires a trip to the doctor, if I were to become a self-employed consultant, I would be tempted to forego insurance for at least a little while to build up a tiny nest egg or safety net. The important thing here is that were I to become a self-employed consultant who chose to forego health insurance for awhile, I would be one of the 15-odd percent of Americans without healthcare. However, you wouldn't hear touted (indeed, nobody would have any way of knowing) that I *chose* to do so, not that I was forced to do so.

Is it possible that the large increase in self-employment and the decrease in the number of individuals with health insurance are correlated, at least to some not-insignificant degree?

Posted by: Scott B at August 27, 2004 12:50 PM

As a recently self employed consultant myself, I would say "damn straight." I got insurance, but I'm not happy about the cost.

But, I note that they will also probably not admit what is the main increase in the cost of healthcare that is being passed on to the consumer; frivoless lawsuits. Let's ask Democratic Vice Presidential candidate John Edwards what his plan is to rein in frivoless medical malpractice suits. Hmmmm?

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