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Delaware Health Care: Challenge and Change

By Lucretia Young

AARP State Director

 

AARP believes that affordable, high quality health care should be available to all Americans. In an effort to address this issue, AARP launched Divided We Fail to raise awareness of America’s most pressing issues – health care access and lifetime financial security. The movement has spread throughout the nation, resulting in grassroots action and influence with policymakers nationwide.

 

Americans can and should get far better value for our health care dollars spent. It is disconcerting to know that adequate health care has become nearly unobtainable for many struggling families, individuals, and workers of all ages and in all industries. Too many have gone into serious debt or bankruptcy and have skipped necessary treatments, tests or prescriptions.

 

A recent AARP survey conducted in Delaware revealed some compelling findings on the issue of health care affordability. According to those who responded to the survey, there are a range of concerns about the future of the state’s health care system. The survey polled boomers statewide, ages 50-64, representing a wide range of income and education levels. A unique challenge exists among this demographic. While they are not yet eligible for Medicare, many of them struggle to cover health care costs due to disability, care-taking responsibilities or lack of work. The compelling results of the study speak for themselves:

 

 

About 87 percent of Delawareans have health insurance, according to recent data from the Delaware Health Care Commission. While this figure is better than the national average, it is unsettling that more than 105,000 Delawareans are uninsured, and the number is expected to increase as the boomer population approaches retirement. 

 

Cost is the biggest problem people face in obtaining and maintaining health care coverage, especially for the boomer generation. Consider this: The average American 2-person household under age 65 spends $514 per year on health care costs. After age 65, that number jumps to $2308 – with decreased income – and this doesn’t include prescription drug costs. (Kaiser Foundation, www.kff.org.)

 

A Case for Change

 

Locally, two major trends in the first State will present challenges in the near future: an aging workforce and a shortage of qualified workers. Improved employee benefits will help attract the best new talent, and retain good workers with knowledge and experience.

 

According to the U.S. Chamber of Commerce, uninsured workers are often self-employed or employed by businesses with fewer than 10 employees. Additionally, many recent retirees are not yet eligible for Medicare and cannot afford health insurance.

 

Employees who have health care coverage put more focus on wellness and prevention. They generally have more efficient, better quality care with fewer medical errors. Comprehensive medical coverage, gives workers more personal responsibility for their health – resulting in less time off from work.

 

Medical Benefits, a journal for HR professionals, published findings showing that nearly 35% of unscheduled absences from work are due to personal illness. An estimated $74 billion is lost annually because of employee absenteeism. Another study, published in a Business Week article, broke it down by employee, finding that absenteeism costs companies $660 per employee per year². Assuming that healthy workers take less time off, the cost of subsidizing some portion of insurance coverage for employees is an investment worth making. 

 

  

How Can Businesses Respond?

 

In 2007, as part of the Divided We Fail initiative, AARP forged an alliance with the Business Roundtable, SIEU, and the National Federation of Independent Business (NFIB) to address the challenges of health care coverage in this country. Since the original alliance began, more than 80 organizations have expressed support for Divided We Fail. These partners support AARP’s efforts to raise the national debate to a new level and get policymakers focused on providing solutions to address what has become a national crisis for America’s job creators.

 

The U.S. Chamber of Commerce has even taken a position on this compelling issue by recognizing that dealing with problems of the uninsured and access to affordable health care should be a top priority.

 

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