About the Uninsured
In Michigan, more than 1 million residents lack health care insurance. About 700,000 of them are adults aged 18-64, with another 100,000 being children.

There is often the misperception that those without health care insurance are unemployed or that their lack of health insurance coverage is the result of simply poor planning. However, 80 percent of uninsured households include at least one adult who is working. Moreover, 73 percent of these households include a family member who works at least 40 hours per week — sometimes working two or more jobs. The crisis of the uninsured is becoming so pervasive that more than one-third of the uninsured — 17 million U.S. residents — have family incomes of $40,000 or more, yet still cannot afford insurance. In 2007 for all plans combined, the average annual premium contribution for single workers was $694 and was $3,281 for families. The average total premium for individuals was $4,479 and was $12,106 for families.

Ninety-three percent of households with an uninsured family member are willing to pay for basic coverage, however for many uninsured families, the price of even basic health insurance coverage is out of their reach.

In addition, about 25 million insured Americans, or nearly one of every five adults younger than age 65, is underinsured and did not have enough coverage in 2007 to protect them from financial hardship if they became very ill. In comparison, 16 million adults were underinsured in 2003.

Most Michigan residents obtain health insurance through their employer. About 33 percent of uninsured adults have lost their health insurance because they have become unemployed, switched jobs or cannot afford the cost of coverage.
 

The Crisis Worsens
Michigan’s depressed economy, record-high unemployment rate, rising health insurance costs and declining number of employers offering health care insurance coverage have resulted in a growing number of uninsured residents. While many employers continue to maintain health coverage for their workers, countless others are being forced to shift additional costs to their employees through higher deductibles, office visit co-payments and prescription drug co-payments.

Without health care insurance coverage, people often miss the opportunity to address health problems at an earlier stage, making more extensive and expensive health care necessary after their conditions have progressed, or causing them to forgo treatment entirely until they often seek care in the emergency room. More than half of uninsured adults said that they needed to see a doctor but couldn’t afford it. As a result, 29 million Americans, 14 percent of adults, are experiencing severe medical debt and becoming insolvent, according to researchers from Harvard’s law and medical schools. People are being forced to pay their medical bills using high-interest credit cards, or through taking out second mortgages on their homes and often do not pursue payment plans with their health care providers. Half of all personal bankruptcies — affecting more than 2 million people annually — are due to medical debt.

Not Just Someone Else’s Problem — Everyone Pays
The crisis of the uninsured not only affects the health, well being and stability of families, children and Michigan’s workforce, but also puts an economic strain on struggling businesses and nonprofit health care providers. In 2005, consumers paid an additional $730 a year for their family health insurance policy and an additional $274 a year for their individual policy to cover health care costs of the uninsured in Michigan.

When residents are not adequately insured and payment for medical treatment is not available, costs are shifted to nonprofit community hospitals, local employers and the government.

These shifted costs are evidenced in the explosion of uncompensated health care provided at Michigan hospitals, skyrocketing from $883 million in 2001 to a record $1.8 billion in 2007. Hospitals are not alone in absorbing costs — business must pay increased monthly health insurance premiums to offset the costs of the uninsured. Many employers are increasing the cost-sharing burden that their employees and dependents must bear, while some small business employers are poised to drop coverage altogether. In addition, employers must choose between paying their employees higher wages or providing health care benefits.

Health care providers and businesses are forced to find other ways to cut costs, eliminate services and leave vacant positions unfilled. The effects are felt not only by the uninsured, but by all community residents. When a nonprofit hospital is forced to eliminate a costly service, it no longer provides that service to any community residents, not just the uninsured. When a local employer can no longer turn a profit because of the health insurance cost shift, it can set off a chain reaction leading to the closing of its doors permanently.

Health Insurance Coverage is Critical for Communities
Adequate health care coverage is essential for a healthy workforce — ensuring speedy recoveries for sick and injured employees and getting them back to work as soon as possible. Children stay healthy, learn effectively and achieve academic success when they have access to quality health care. A strong health care sector improves quality of life and helps Michigan attract and retain businesses and jobs. Major employers from other economic sectors will neither locate nor stay in communities that lack strong health care systems and infrastructures.