Working Families

More than 7 out of 10 people without insurance in Illinois have at least one full-time worker at home, largely because health care costs are increasing faster than wages, and have been since 1999. If this trend continues, as expected, more and more working families will be unable to afford coverage.

Fact:  Workers' health insurance premiums increased an average of 13.9 percent from 2002 to 2003. This is the largest increase in premiums since 1990 and the seventh consecutive year of accelerating premium increases.¹

Fact:  To offset premium increases, employers raised employees' copays and reduced benefits. This meant that in actuality, workers experienced a 15% increase in their health care costs in 2002.²

Fact:  Between 2001 and 2010 workers can expect their wages to increase 38 percent; health insurance costs are expected to increase by 123 percent during that same time.³

Fact:  Medical errors are responsible for preventable injury in as many as 1 in 25 hospital patients. Every year, 48,000 to 98,000 people die unnecessarily from medical errors. Medical errors increase health care costs by $8 to $15 billion a year in this country.⁴

Fact:  Between 1995 and 2000, 30 percent of the cost increases in health care can be attributed to the rising cost of prescription drugs.⁵

What can we do about it?

Reduce prescription drug costs

By joining together, states and other employers can negotiate reasonable prices with prescription drug manufacturers.

-  For more on Rx spending, click here

Create a state-wide non-profit health insurance pool

Some states are considering the formation of a non-profit state-wide pool that will offer an alternative to traditional insurance.

In one potential model being considered in Maine, the state would take over the management of an individual's health care if the person surpasses a certain cap in his or her health policy. The private carrier would be able to keep the client and would be protected from heavy losses. That in turn, could help keep down the cost of traditional health plans.

Another method would be to switch people whose medical expenses get too high from their insurance company to the nonprofit insurer. (Source: Sunday, February 9, 2003 Portland Press Herald.)

Increase Number of Large employers who offer affordable benefits

While most large employers offer health coverage, some do not offer coverage that is comprehensive or that is affordable for the whole family. These employees either go without health care or get their health care through a public program or at a hospital emergency room. Then, taxpayers and other insurance policy holders pick up the tab.

Everyone, employers and employees have a responsibility to make a fair and equitable contribution towards health care costs. The state can take the following steps to make sure that large profitable employers don’t pass of the cost of their workers’ health care to taxpayers:

1. Give preference in state contracts to firms that provide a living wage and affordable benefits.
2. Prohibit the distribution of economic development subsidies to firms that do not provide affordable benefits.
3. Charge those employers that do not provide benefits and help enroll their uninsured workers in an insurance program.

Reduce medical errors through safe staffing in hospitals

Medical errors frequently occur when health care facilities are short staffed or when caregivers are forced to work mandatory overtime to the point of exhaustion. Health care employees and working families are joining together to reverse these disturbing trends by negotiating safe staffing levels and winning legislative protection.

-  Groups such as the SEIU Nurse Alliance are making a difference