Perryman: Harming Health Hurts!

Medicaid allows some of the nation’s most vulnerable residents to obtain needed health care, thus improving the lives of individuals and families. Without insurance coverage, many people will postpone needed appointments or even forego essential treatments. The inevitable result is worse health outcomes and even higher death rates as manageable problems escalate. Empirical evidence suggests that increasing Medicaid coverage improves health and reduces mortality rates. In fact, life expectancy is extended by more than a year for those with coverage.

In addition to the avoidable and adverse health consequences to the affected people and families, reducing health insurance coverage involves significant economic and fiscal losses. While many hospitals and clinics provide treatment to the uninsured, there is a substantial cost to be borne by the taxpayers who subsidize uncompensated care and those with insurance who face higher premiums to offset these expenses. 

As the number of insured persons falls, health-related spending also decreases, reducing business activity in communities across the country. At a time when many hospitals and nursing care facilities are struggling to remain financially viable, particularly in smaller population centers and rural areas, higher numbers of uninsured will only exacerbate and compound these problems. In addition, higher morbidity and mortality result in fewer workers, more absenteeism, less productivity, shorter work lives, and other inefficiencies which minimize economic performance.

The current incarnation of the federal budget bill, which was recently passed by the House of Representatives, if ultimately implemented in its present form, involves significant changes to Medicaid which would significantly reduce the numbers of people covered over time. The nonpartisan Congressional Budget Office estimates that, by 2034, some 7.6 million more Americans would be uninsured due to the proposed provisions.

The economic costs of 7.6 million fewer people having Medicaid coverage will be substantial, with harms spread across the country. We recently estimated the impact of the potential decrease and found that, if the situation persists, losses include $329.2 billion (in 2025$) in annual gross product and almost 3.0 million jobs (including multiplier effects). (Note that these estimates account for the potential offsetting benefit of deploying the saved fiscal resources in other ways.) 

Millions of American children and adults lack health insurance, and the proposed reductions will make things worse. Most cannot afford private coverage and find it difficult to obtain basic or preventive care. Medicaid alleviates a substantial portion of this problem and supports the nation’s health care system, thus enhancing sustainability while providing a significant net economic benefit. Reducing the number of people with health insurance through Medicaid not only makes it harder for Americans to access needed care, but also leads to notable net economic losses that will persist for generations. Stay safe!

Editor’s Note: The above guest column was penned by Dr. M. Ray Perryman, president and chief executive officer of The Perryman Group (www.perrymangroup.com). The Perryman Group has served the needs of over 3,000 clients over the past four decades. The above column appears in The Rio Grande Guardian International News Service with the permission of the author. Perryman can be reached by email via: shelia@perrymangroup.com.

The post Perryman: Harming Health Hurts! appeared first on Rio Grande Guardian.