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New Report Shows Drop In Number Of Uninsured

Posted on: Wednesday, 27 August 2008, 10:45 CDT

The U.S. Census Bureau reported Tuesday that fewer Americans were without health insurance during 2007 as more people received government-funded coverage.

The agency said that 15.3 percent of Americans had no public or private health insurance in 2007, representing a 15.8 percent decrease from 2006.   The total number of uninsured was reduced from 47 million to 45.7 million, the first reduction in the number of uninsured since President Bush took office.

The U.S. Census Bureau also said the country’s poverty rate remained stable, although a higher percentage of children were classified as impoverished. U.S. median household income increased slightly in 2007, the bureau reported.

Health care is a critical issue in the upcoming U.S. presidential election, with both Republican Sen. John McCain and Democrat Sen. Barack Obama proposing to overhaul what both candidates call a broken healthcare system.

The percentage of people covered through their place of employment dropped slightly,  while the number receiving coverage through state-funded Medicaid increased by 1.3 million people, a number equal to the drop in the total number of uninsured.

"A lot of the fall is due to the increase in the health insurance from public health insurance," David Johnson, head of the Census Bureau's housing and household economic statistics division, said during a news conference with reporters.

In 2007, 8.1 million or 11 percent of children under 18 were uninsured, an 11.7 percent drop from 8.7 million uninsured children in 2006.
Real median household income was $50,233 in 2007,  a 1.3 percent increase from 2006.

The agency said the official U.S . poverty rate in 2007 was 12.5 percent, up slightly from 12.3 percent in 2006.   In 2007, 37.3 million people were living in poverty, up from 36.5 million the previous year, the bureau said.

For 2007, the poverty threshold was defined as annual income of $21,203 for a family of four, $16,530 for a family of three, $13,540 for a family of two and $10,590 for individuals.  The children’s poverty rate increased from 17.4 percent to 18 percent between 2006 and 2007, the agency reported.

"The long period of strong economic growth we were in had a positive impact for most Americans," said White House spokesman Tony Fratto.
However, not everyone shared Fratto’s view of the report.

"To take one ounce of comfort from these statistics would be deluding yourself," Sister Carol Keehan, head of the nonprofit Catholic Health Association of the United States, told Reuters.

Sen. McCain’s proposal to cut the number of uninsured includes a $5,000 tax credit per family to help purchase health insurance, along with terminating tax breaks for employer-provided coverage.

"Today's announcement reminds us that Americans are suffering in a struggling economy. Too many of our neighbors are living in poverty, too many can't find a job, and too many are living without health insurance,” Sen. McCain said in a statement.

Sen. Obama favors a different approach, and said he would expand public programs and a program that allows small businesses and individuals to buy health care similar to plans available to employees of the federal government.  Sen. Obama used the new report to criticize both President Bush and Sen. McCain, whom he claims would continue Bush's economic policies.

"Another 816,000 Americans fell into poverty in 2007 -- including nearly 500,000 children, bringing the total increase in Americans in poverty under President Bush to 5.7 million. And on Bush's watch, an additional 7.2 million Americans have fallen into the ranks of the uninsured,"
Sen. Obama said in a statement about the new Census Bureau data.

President Bush has previously vetoed legislation that would have expanded a children's health program for low- and moderate-income families.  However, last year he signed a temporary extension, which means the program’s fate will likely be determined by the next Congress and President.



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On The Net:

U.S. Census Bureau

Catholic Health Association of the United States

Source: redOrbit staff

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