MUCH ADO ABOUT HEALTH INSURANCE IN THE UNITED STATES …AS AFL-CIO STEPS UP CAMPAIGN

The two Democratic Party front runners, Barack Obama and Hillary Clinton, are at each others jugular though for the nomination, but one thing Americans are happy about is, both have the issue of comprehensive health insurance close to their hearts. Of course both plans are similar, one thing we can take to the bank is, either of them who becomes the occupant of the oval office will tackle the issue head on. This is s o because the status-quo had for long time paid lip service to this very important sub-sector. While the drug and health insurance companies smile to the bank annually, the American people suffer.

We have had several calls for a change in the neglect of this key sector, these include the American federation of Labor -Congress of industrial Organization ( AFL-CIO). The over 10 million member strong voluntary labor union has a simple message: In America no One Should Go Without health Care. This 55 year old union has vowed to take the struggle to the next level this year. We can only wish them luck.

In 2006,, 47 million US residents had no health insurance, and the number continues to grow. Tragically of this number 8.7million are children.

Health care costs are rising at more than twice the rate of inflation., with health premiums going up by 78%. Employers are shifting health care costs to employees viz the very expensive co pay. Here are some examples of employer based family premium: these figures are for 2005. In Pennsylvania employee put in $2120, while the employer made available $8988; in Mane it was ratio $3303/$7986; Louisiana, $3160/$7442, and Massachusetts, $3040/$8395.

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Surveys showed that in 2006, the number of uninsured adults stood at 46,995 million, of this figure, 8.6million were children. Yes, some struggle to keep up the copay, but records show that one third of those worry about losing the coverage.

One very sad flank to this is, while poor Americans and their kids die daily due to non-availability of health insurance,( the American Idol Give Back showcased some of these sad stories), the drug companies and their health insurance counterparts smile to the bank annually. In 2006 the health insurance firm CEO’s average compensation stood at $8.7million, while their counterparts in the drug manufacturing sector took home an average of $4.7million. Drug manufacturing is the second most profitable industry in the US, with 19.6% profit compared with 6.3% for all fortune 500 companies .Drug makers were the most profitable industry in 1995, third in 2002, and fifth in 2005.

It is pertinent to stress here that despite this grim picture, the US spends more than any other nation on health care. Spending totaled $2trillion in 2005 representing 16% of the nation’s gross domestic product (GDP). In contrast, health care spending in Switzerland accounted for 11.6% of the GDP; 10.7% in Germany, 9.8% in Canada, and 11.1% in France. Poser then is what is the problem…is it our population or a crass lack of political will.

Another very troubling aspect of this is the very high cost of drugs in the United states. Prices under Medicare part D, which proponents claimed would limit costs because of the magic of the market, have been increasing much faster than seniors incomes. Part D prices for top 15 drugs prescribed to seniors had a median price increase of 9.2% in 2006/2007, the first year of the programme.

According to families USA, Lipitor costs 96% more here compared to Canada. Zocor is 52%, Effexor XR, 79%; and Advair, 85%.

By Churchill Spencer Umoren

 

Other articles by Churchill Spencer Umoren

*The American Criminal Justice Nightmare

*Why OBAMAmania Is A Fairy Tale