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The Messenger-Inquirer Keith Lawrence Perspective Column: Keith Lawrence, Perspective

Posted on: Sunday, 5 February 2006, 15:00 CST

By Keith Lawrence, Messenger-Inquirer, Owensboro, Ky.

Feb. 5--OK, I'm not an economist.

And I'm sure not a financial guru.

Heck, the last time my checkbook balanced was 1987 -- when I switched banks.

But it doesn't take a financial guru to know that if something isn't done soon about the cost of health care -- and health insurance -- this country is going to be in big trouble.

I've heard of two companies in town that recently dropped health insurance as a benefit.

That's a national trend.

The Employee Benefit Research Institute reported last year that companies had dropped a record number of workers from benefit programs since 2000.

Enough workers lost company health insurance to drop the percentage covered by employers by 4 percent, the report said.

Now, it said, fewer than 60 percent of Americans get health insurance through their employers.

And 6 million fewer people had health insurance in 2004 than in 2000.

And just as disturbing is a trend toward "limited benefit" health insurance.

What's that?

Well, just what it says.

Limited benefits.

At first glance, it sounds great for both employers and employees.

Deductibles are relatively low -- $250 for an in-network provider.

Premiums are low.

And as long as you don't have any major medical bills, it's great.

But the kicker is that "limited benefit" policies generally have a cap of $10,000 per accident or illness.

And the prescription drug cards often have a monthly cap of $35.

For most people, that's fine.

The experts say that most people have less than $1,000 in health care expenses each year.

I've been lucky.

The last night I spent in a hospital was 50 years ago when I was 8 and broke my leg.

My insurance today has a $2,000 deductible, which is gonna hurt if I ever need it.

But I'm covered if something major happens.

And it will someday.

Last year, the median bill at Owensboro Medical Health System -- just for the hospital, not the doctors -- was $5,083.

So, a limited benefit policy would have been fine for half the patients who entered the hospital.

But half of the bills were higher than $5,083.

Many of them much, much higher.

And those folks would be stuck with staggering hospital bills.

Last year, a Health Affairs survey found that medical bills were the reason for more than half of the personal bankruptcies filed in 2004.

As the number of people insured decreases -- and the number of limited benefits plans rise to help employers afford insurance -- hospitals and doctors are going to be faced with fewer and fewer people who can pay their bills.

That's going to put a financial strain on the entire health care industry.

And that means trouble for everybody.

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Copyright (c) 2006, Messenger-Inquirer, Owensboro, Ky.

Distributed by Knight Ridder/Tribune Business News.

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Source: Messenger-Inquirer

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