Greeley Trib Column: Budget Reform Moves Forward

Rep. Don Marostica continues to make the case for why Colorado needs SB 228, in a column in today's Greeley Tribune. Obviously, since the writing of this op-ed, SB 228 has passed out of the House of Representatives and is awaiting the Senate to take it up on concurrence.

This legislation makes all the sense in the world, because not only will it strengthen Colorado's ability to make a quick recovery from recessions, but it will also help build up the state reserves so that budget cuts aren't quite so brutal for Colorado families when the economy takes a turn for the worse.

CCLP, CVC unveil new report on health care affordability

UPDATE: The Denver Post covers the release here, and Public News Service has a radio story here.



The Colorado Center on Law and Policy (CCLP) and its partners at Colorado Voices for Coverage (CVC) introduced a new report today, The Cost of Care: Can Coloradans Afford Health Care that explores questions about health care affordability in Colorado. The report shows that many Colorado families have little or nothing to pay for health care, and, in many cases, health care costs force families to make financial tradeoffs with other necessary expenses.

“This study shows that lower-income Coloradans face an uphill climb when it comes to their ability to pay for health care,” said CCLP Health Policy Analyst and the primary author of the study, Liz Feder. “We now know that people face serious trade-offs when it comes to health care spending and that no single dollar amount or uniform percentage can adequately account for what’s affordable.”

“The community budget workshops showed a frayed health care system that leaves too many Coloradans behind,” said Dede De Percin, Executive Director of the Colorado Consumer Health Initiative. “All across Colorado, we saw families struggling to pay crushing health care costs, and in many cases, foregoing otherwise vital needs to pay for health care.”

The report is based on research resulting from nearly 100 community budget workshops conducted throughout Colorado, where approximately 1,000 families under 500% of the Federal Poverty Level were surveyed. Additionally, data was pulled from the Bureau of Labor Statistics’ Consumer Expenditure Survey for the portion of the study that examined consumer trade-offs when it comes to health care spending.

Key findings from the report include:
-Most families’ expenses are greater than their incomes.
-Debt plays an integral role in families’ financial decisions.
-Most families experienced an increase in debt over the previous year.
-Families earning between 200% and 400% FPL have some income available to spend on health care, but cannot afford health insurance without a substantial subsidy. At least some of these families would require a full subsidy. Only above 400% FPL can most families make a substantial contribution to their coverage.
-Many families that can afford health insurance are only able to do so because they have access to group coverage where the employer’s share of the cost serves as a significant “subsidy.”
-The more a family spends on health care and health insurance, the less it spends on basic necessities and investments in long-term opportunities. When families spend more than 5% of their household income on health care, they make substantial tradeoffs on other important expenditures, such as transportation, housing, and child care.
-As families have to spend more on health care, the largest tradeoffs are often in savings and education.

The report also includes numerous policy implications that hopefully will inform policymaker on how affordability should be addressed and even defined. What is “affordable” varies widely depending on family composition, income level, age, employment status, cultural values about spending obligations, catastrophic events, and other factors. Other policy implications include:

· Available income varies widely even within income groups. Therefore, there is no single dollar amount or percentage of income that will be suitable for all families, even within the same income group.
· A common sense measure for expenditures should include both necessary expenses (food, housing, etc.) and other financial responsibilities (student loans, debt payments, etc.).
· Public policy should not punish lower income people for savings, especially for education, housing, and retirement. Any affordability standard should be based on income, minus such savings.
· 5% of household income is a threshold at which health care requires substantial tradeoffs and is therefore a starting point for the consideration of an affordability standard. However, many households will still require targeted assistance even under this threshold.

The Cost of Care study is being released just as the U.S. Senate is expected to hold hearings about health care affordability in early May.

EXECUTIVE SUMMARY

COMPLETE REPORT

Swine flu shows us why health care access must be universal

This is one of an occasional series of posts from CCLP's Special Counsel Ed Kahn, on topics ranging from public policy to the economy to politics to the media. Enjoy:

At this writing, it is unclear whether swine flu will come to Colorado, and whether it will be serious if it does. But one thing is clear: swine flu shows us why health care must be universal.

The authorities tell us that Tamiflu and another anti-viral medication are effective against swine flu, and the US Center for Disease Control tells it has 50 million doses in storage, being shipped to the States or in reserve to be distributed. But one thing is certain – unless the people who have been infected with serious cases of swine flu get the medication, they will suffer, their families will suffer, and their children will suffer. And each one of them may inadvertently infect others in the general population.

The best antidote – make evaluation and treatment available to all, through primary care doctors, school nurses, and others in addition to the emergency room. The emergency room will not be able to handle all should swine flu come to Colorado. And if we do not do this, the effects of any epidemic will be much worse. It is for the protection of all that all must be served. If there is a case to be made to the contrary, I do not know of it. Can you think of any reason to expose more people to this disease, when with sensible precautions we can avoid doing so? I can't.

--Ed Kahn, CCLP Special Counsel

Governor Signs HB 1293; Big Step Forward For Health Care

Governor Ritter signed HB 1293 yesterday in a move highlighting the need to leverage federal dollars and expand health care coverage for Coloradans in need. CCLP Health Analyst Liz Feder commented on the importance of the legislation in this Denver Post article.

At a time when Colorado is facing a 22 year high in unemployment and growing number of uninsured, HB 1293 is a signficant step forward to strengthen the health care safety net in this state.

Provider Rate Cuts Unhealthy for Coloradans and Colorado's Economy

It's no secret that the pain of the proposed provider cuts is a direct attack on lower-income Coloradans and on healthcare safety net services, at a time when people need those services the most.

Check out this CCLP issue brief about why these provider cuts are bad for Colorado and what the legislature can do to avoid them.

Budget Update: House Approves Troubling Cuts

Late last week, the Colorado House of Representatives passed an amended version of the Long Bill. Refusing to cut $300 million from higher education, the House instead targeted other general fund programs with virtually no debate. The cuts, which are in addition to previous cuts this session, were adopted two key amendments outlined in this COFPI issue brief.

The cuts outlined in this issue brief, the adjustments to higher education, and the proposed $30.2 million revenue increase from the repeal of the tobacco tax exemption (HB 1342) come close to erasing the $300 million gap.

CCLP and COFPI are very concerned about the provider rate cuts and believe that there are better options available, whether it means closing tax loopholes, dipping further into reserves, or other possibilities. As Colorado faces a serious economic situation with rising unemployment and growing number of uninsured, this is exactly the wrong time to be cutting vital health care and safety net services.

Greenstein: Help is on the way...for the wealthy.

Bob Greenstein from the Center on Budget and Policy Priorities penned this excellent column on Huffington Post about the goings on in the U.S. Senate related to expanding estate tax cuts for the richest 2% of Americans.

COFPI Issue Brief: March 2009 Revenue Projections

It's no secret that the March revenue projections brought more unwelcome news to Colorado, bookended by rising unemployment and a deteriorating fiscal situation. As the legislature moves forward with the budgeting process, this COFPI issue brief provides a detailed analysis of the March revenue projections, and what they may mean for the state's fiscal future.

Udall and Bennet Take a Stand Against Flawed Tax Policy

Yesterday, as the U.S. Senate considered their budget resolution, an amendment was narrowly approved by a 51-48 vote to actually further cut estate taxes for the wealthiest .2 percent, increasing the exemption from $7 million to $10 million dollars for a couple.

While the provision is nonbinding, it still sets the tone in the Senate for fiscal and tax priorities. And we don't like what we're hearing.

This terrific New York Times editorial lays out the case for why this is such a terribly flawed push toward bad fiscal policy, and why it amounts to fighting the same cooked up, tired battles of yesterday, in the face of an unprecedented economic crisis. Ladies and Gentlemen, your 2009 United States Senate!

On the positive side though, we have to express our thanks and appreciation to Senators Udall and Bennet for voting against this absurd amendment. It's nice to see some Colorado common sense being exercised in the halls of Congress.

Foreclosure Assistance Bill Heads to Governor's Desk

Earlier this week, the Senate gave final passage to HB 1276, which provides a 90-day timeout in the foreclosure process for qualifying homeowners. CCLP Special Counsel Ed Kahn testified in favor of the legislation in committe, and worked with the Governor's Office and other key stakeholders to shape the legislations.

The bill now moves to the Governor's desk, where it is expected to be signed into law.

Op-Ed: Maximizing Federal Dollars for Colorado's Unemployed Workers

The Boulder Daily Camera ran an oped today about SB 247, jointly authored by COFPI's Kathy White and 9to5's Linda Meric. The oped highlights how this legislation should be an easy choice for lawmakers, amid a recession-focused legislative session when those are few and far between. It only requires a few simply changes to modernize Colorado's unemployment insurance system that would result in $127.5 million in federal money for unemployed workers.

Makes a lot of sense. So let's do this, people.