The Hispanic community needs health insurance reform

Guest Editorial:
 
The debate over medical health reform has divided into warring camps as to whether we should or should not keep the present system. Opponents claim the nation is heading into socialized medicine and the other side proclaiming we cannot continue to ignore the millions of citizens that lack insurance and are unable to afford medical services.
 For the Hispanic community lack of reform has grave consequences.
 According to the Census Bureau, of the 45 million uninsured in the country almost 16 million are Hispanic. There are 2.5 million U.S. Hispanic owned businesses the majority classified as small and family-owned. All small businesses are charged an average of almost 18% more for employee health insurance coverage than larger companies for the same benefits.
 During a Senate Commerce Committee meeting, testimony revealed that in 1993, 61% of small businesses offered health insurance to its employees, but is now down to only 38%. The U.S. Hispanic Chamber of Commerce reports that 52% 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. For the employers the amount based on a 40 hour week, was $2.04 per hour and for the employee $0.74 per hour.
 By end 2008, the total cost had risen by 117% to an average of $12,679 with the split being $9,325 employer contribution and $3,354 for the employee. This averages to a $4.48 an hour raise and a cost of $1.61 out of pocket 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 workman’s compensation, Social Security employer contribution, unemployment insurance, etc.
 For an employee making between $8 to $15 an hour before deductions and supporting a family of 3 or 4, 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.
 The bad news doesn’t stop, 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 is not difficult to understand why the sector who works 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 seeing 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 the analysis of 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 in turn will force even big companies 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 for the nation if both sides of the debate would stop yelling at each other with cries of doom. There is need for reform and there is a need to address the issue with intelligence, compassion and with civility.
<a href="http://www.HispanicVista.com">www.HispanicVista.com</a> and Vice President of the Baja California Medical Tourism Association. Contact at <a href="mailto:POsioJr@aol.com">POsioJr@aol.com</a>