Health Care Survey Illustrates Financial Hardship
We have written extensively about the health care challenges faced by rural small businesses, including farmers and ranchers. Our report Health Care in Rural America (www.cfra.org/policy/health-care) speaks in detail about farm and ranch families’ dependence on a system that is very expensive and provides minimal coverage.
Now a new health insurance survey of farmers and ranchers corroborates the financial hardships that accompany rising health care costs.
The Access Project has released Who Experiences Financial Hardship Because of Health Care Costs?, part of a series detailing results from a 2007 health insurance survey of farm and ranch operators, a survey of over 2,000 non-corporate farmers and ranchers in Iowa, Minnesota, Missouri, Montana, Nebraska, North Dakota and South Dakota.
Using two commonly accepted measures of financial hardship caused by health care costs – 10 percent or more of household income spent on insurance premiums or out-of-pocket medical costs, and a self-reported perception that health care costs contribute to a household’s financial problems – the report finds:
• 44 percent of households spent more than 10 percent of their income on health insurance premiums and additional out-of-pocket medical expenses. For those who said farming or ranching was their principal occupation, the figure rose to 54 percent.
• Those who purchase private, non-group insurance are more at risk of spending 10 percent or more on health care costs.
• Those who purchase health insurance in the private market spend twice as much on premiums and out-of-pocket costs as those who obtain insurance through off-farm or ranch employment.
• Nearly a quarter of households reported that health care costs contributed to financial problems; again, the figure is higher for those who report farming or ranching as their principal occupation.
• Households that reported health care-related financial problems spent an average of 42 percent of their income on health insurance premiums and out-of-pocket costs.
• Significant numbers of those reporting health care-related financial problems said health care costs caused them to delay making improvements on the farm or ranch and that health care costs made it harder to pay off farm or ranch loans.
Health care costs also have serious long-term consequences for farm and ranch families. Over a quarter of all responding households stated they had to draw on family resources and assets to pay health care costs. The largest resources used were family savings, credit cards and bank loans, but significant numbers withdrew funds from retirement accounts or borrowed against the farm or ranch. Whatever the source, many families are using important assets or incurring larger debt to pay for basic health care needs and placing their financial futures at risk.
These findings reflect many of the unique health care challenges faced by rural people. As the new Congress and new administration prepare to debate reforming the nation’s health care system, together we must educate our policymakers on the need to devise a health care system that works for all.
The Access Project reports may be found at www.accessproject.org/medical.html
Contact: Jon Bailey, jonb@cfra.org or 402.687.2103 x 1013 for more information.
Now a new health insurance survey of farmers and ranchers corroborates the financial hardships that accompany rising health care costs.
The Access Project has released Who Experiences Financial Hardship Because of Health Care Costs?, part of a series detailing results from a 2007 health insurance survey of farm and ranch operators, a survey of over 2,000 non-corporate farmers and ranchers in Iowa, Minnesota, Missouri, Montana, Nebraska, North Dakota and South Dakota.
Using two commonly accepted measures of financial hardship caused by health care costs – 10 percent or more of household income spent on insurance premiums or out-of-pocket medical costs, and a self-reported perception that health care costs contribute to a household’s financial problems – the report finds:
• 44 percent of households spent more than 10 percent of their income on health insurance premiums and additional out-of-pocket medical expenses. For those who said farming or ranching was their principal occupation, the figure rose to 54 percent.
• Those who purchase private, non-group insurance are more at risk of spending 10 percent or more on health care costs.
• Those who purchase health insurance in the private market spend twice as much on premiums and out-of-pocket costs as those who obtain insurance through off-farm or ranch employment.
• Nearly a quarter of households reported that health care costs contributed to financial problems; again, the figure is higher for those who report farming or ranching as their principal occupation.
• Households that reported health care-related financial problems spent an average of 42 percent of their income on health insurance premiums and out-of-pocket costs.
• Significant numbers of those reporting health care-related financial problems said health care costs caused them to delay making improvements on the farm or ranch and that health care costs made it harder to pay off farm or ranch loans.
Health care costs also have serious long-term consequences for farm and ranch families. Over a quarter of all responding households stated they had to draw on family resources and assets to pay health care costs. The largest resources used were family savings, credit cards and bank loans, but significant numbers withdrew funds from retirement accounts or borrowed against the farm or ranch. Whatever the source, many families are using important assets or incurring larger debt to pay for basic health care needs and placing their financial futures at risk.
These findings reflect many of the unique health care challenges faced by rural people. As the new Congress and new administration prepare to debate reforming the nation’s health care system, together we must educate our policymakers on the need to devise a health care system that works for all.
The Access Project reports may be found at www.accessproject.org/medical.html
Contact: Jon Bailey, jonb@cfra.org or 402.687.2103 x 1013 for more information.
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