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Consumer Affairs

Recession Likely to Have Health Consequences

Nearly 500,000 people may lose health coverage due to job losses


January 15, 2009
The recession's economic impact is well known. Businesses make less money and people tend to lose their jobs. But doctors are the George Washington School of Public Health and Health services are worried about the recession's impact on health.

With the jump in the unemployment rate to 7.2 percent in December, there is further growth in the ranks of the uninsured. As many as half a million people may lose their health coverage as a result of last month's job losses.

A new report by GW/SPHHS spells out the potential health consequences of this, and other aspects of the recession. It also reviews proposals that are part of federal efforts to stimulate an economic recovery, and that would help to reduce impoverishment, strengthen access to health care, and protect the health of more Americans.

The links between income and health are clear — higher-income people live longer, with less disease and disability, than lower-income people. Research also shows that:

• In recent months a rising number of Americans have failed to obtain medical care because of its cost, cut back on preventive care, and skimped on their medication.

• For every one percent rise in joblessness more than one million people join the ranks of the uninsured. People who are uninsured receive poorer medical care, are less likely to get recommended screenings and other prevention services, and are more likely to delay physician visits, neglect chronic conditions, and incur medical debt.

• When joblessness jumps by one percent, states add about one million more people to the rolls of Medicaid and the State Children's Insurance Program (SCHIP), putting increased pressure on their already tight budgets. Many states are cutting their Medicaid programs despite evidence that it is an economic, efficient, and resilient form of health insurance coverage.

• Families are being forced to choose among competing demands for food, home energy, and health care. Families that are "food insecure" or "energy insecure" are more likely to have children in poorer health.

The report concludes that the most effective economic recovery package will increase protections to vulnerable families and put money into the hands of people most likely to spend it quickly.

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