Medical costs eat earnings

WASHINGTON -- An increasing number of Nevadans will spend a larger part of their earnings on health care next year, according to a report released Wednesday by a group that said medical care is becoming unaffordable even for families with insurance.

Families USA, a nonpartisan consumer health group, said 189,000 Nevadans, or 8.4 percent of the population under 65, are in families that pay more than a quarter of their earnings in out-of-pocket health costs including insurance premiums.

The number of struggling families has more than doubled since 2000, when only 3.9 percent spent as much as 25 percent on health care, Families USA officials said.

"This is not a story about people down and out, or people looking for a handout. They have insurance and are working," said Ron Pollack, the group's executive director.

Pollack said between 73.5 percent and 81 percent of individuals are in families with medical insurance, suggesting their coverage is inadequate or that their premiums are growing faster than their earnings.

"This country has moved further and further towards a crises in health care, and these numbers reflect that," said Rep. Shelley Berkley, D-Nev., who took part in a teleconference discussing the report.

Families USA said 657,000 Nevadans, about 30 percent of the population under 65, are in families that will pay more 10 percent of their earnings on medical needs next year.

In 2000, 15.4 percent of Nevadans spent more than 10 percent, the group said.

Paying for health care by credit card has become increasingly common, according to the study. Data show that more than a third of people with insurance report having trouble paying their medical bills or are in the process of repaying medical debt.

Families USA cited a number of factors for the jump in costs. Health insurance premiums are rising, forcing some employers to drop coverage or increase the share of the premiums employees must pay. Some employers offer insurance that covers fewer services or requires higher out-of-pocket costs, the study found.

The Families USA study is part of series examining conditions in each state. The estimates were generated from a statistical model by the Lewin Group of Virginia, which used information from the federal census and U.S. Department of Health and Human Services.

In Nevada on Wednesday, a nonpartisan campaign that advocates for universal health coverage released results of its assessment of the presidential candidates' proposals to address the issue.

Nevadans for Health Care is part of a national campaign, backed by the Service Employees International Union, targeting the four states with early presidential contests. In Nevada, it says it has signed up 14,000 "health care voters" who are pledging to go to the state's Jan. 19 caucuses and only support candidates who have addressed health care to their satisfaction.

The group did not grade, rate, rank or endorse any of the candidates, but it produced a 16-page informational guide laying out their policies. The report is available at www.nvforhealthcare.org.

In a conference call, the campaign's Nevada director, Samantha Galing Gaddy, said polls have shown a majority of voters from both parties want candidates to present plans to provide "quality, affordable health care for everyone." Health care consistently ranks as voters' No. 1 domestic concern.

"That's why we released this report, so that Nevadans can see what the candidates are offering," Galing Gaddy said. "Voters want to know which candidates are leading the way on this issue and which just refuse to listen."