Healthcare is good, right?
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- Sibyl Goodman
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1 Healthcare is good, right? Associate Professor of Economics University of Alaska Anchorage Presentation for 2018 Alaska State of Reform Health Policy Conference 10/10/2018
2 Outline Overview 1 Overview 2 3 4
3 Outline Overview 1 Overview 2 3 4
4 Let s start with the good As of June 2018, there were 38,400 jobs in the health-care industry with average monthly earnings of 4,750 dollars. Wages from the sector play a pivotal role in the Alaska economy. During this recession, it was the only sector that experienced continual job growth. Access to care has improved over the last two decades as the number of physicians increased substantially.
5 Let s start with the good As of June 2018, there were 38,400 jobs in the health-care industry with average monthly earnings of 4,750 dollars. Wages from the sector play a pivotal role in the Alaska economy. During this recession, it was the only sector that experienced continual job growth. Access to care has improved over the last two decades as the number of physicians increased substantially.
6 Let s start with the good As of June 2018, there were 38,400 jobs in the health-care industry with average monthly earnings of 4,750 dollars. Wages from the sector play a pivotal role in the Alaska economy. During this recession, it was the only sector that experienced continual job growth. Access to care has improved over the last two decades as the number of physicians increased substantially.
7 Who should care about health-care cost and why? Individuals should care because the high cost of health care is partially responsible for wage stagnation. Also, high health-care costs are associated with high out of pocket costs and bankruptcies. Businesses should care because a significant portion of employee compensation goes towards health premiums. Government should care because a significant portion of the tax dollars are allocated towards health-care services. They all should care simply because of opportunity cost. In other words, every dollar allocated to health-care is not being spent on education, food, rent, etc..
8 Who should care about health-care cost and why? Individuals should care because the high cost of health care is partially responsible for wage stagnation. Also, high health-care costs are associated with high out of pocket costs and bankruptcies. Businesses should care because a significant portion of employee compensation goes towards health premiums. Government should care because a significant portion of the tax dollars are allocated towards health-care services. They all should care simply because of opportunity cost. In other words, every dollar allocated to health-care is not being spent on education, food, rent, etc..
9 Who should care about health-care cost and why? Individuals should care because the high cost of health care is partially responsible for wage stagnation. Also, high health-care costs are associated with high out of pocket costs and bankruptcies. Businesses should care because a significant portion of employee compensation goes towards health premiums. Government should care because a significant portion of the tax dollars are allocated towards health-care services. They all should care simply because of opportunity cost. In other words, every dollar allocated to health-care is not being spent on education, food, rent, etc..
10 Who should care about health-care cost and why? Individuals should care because the high cost of health care is partially responsible for wage stagnation. Also, high health-care costs are associated with high out of pocket costs and bankruptcies. Businesses should care because a significant portion of employee compensation goes towards health premiums. Government should care because a significant portion of the tax dollars are allocated towards health-care services. They all should care simply because of opportunity cost. In other words, every dollar allocated to health-care is not being spent on education, food, rent, etc..
11 How does health-care affect the state s economic activity and its fiscal condition? In 2014, health-care spending accounted for 14% -or about one-seventh- of Alaska s economy, a slightly smaller share than the national average. Health-care spending in Alaska increased by more than 5 times over the past 23 years. Between 2003 and 2014, average annual deductibles for family coverage in Alaska more than doubled as a percentage of median income. At 33.33%, the Health and Social Services budget was the largest single portion of the agency operating budget in FY 2018.
12 How does health-care affect the state s economic activity and its fiscal condition? In 2014, health-care spending accounted for 14% -or about one-seventh- of Alaska s economy, a slightly smaller share than the national average. Health-care spending in Alaska increased by more than 5 times over the past 23 years. Between 2003 and 2014, average annual deductibles for family coverage in Alaska more than doubled as a percentage of median income. At 33.33%, the Health and Social Services budget was the largest single portion of the agency operating budget in FY 2018.
13 How does health-care affect the state s economic activity and its fiscal condition? In 2014, health-care spending accounted for 14% -or about one-seventh- of Alaska s economy, a slightly smaller share than the national average. Health-care spending in Alaska increased by more than 5 times over the past 23 years. Between 2003 and 2014, average annual deductibles for family coverage in Alaska more than doubled as a percentage of median income. At 33.33%, the Health and Social Services budget was the largest single portion of the agency operating budget in FY 2018.
14 How does health-care affect the state s economic activity and its fiscal condition? In 2014, health-care spending accounted for 14% -or about one-seventh- of Alaska s economy, a slightly smaller share than the national average. Health-care spending in Alaska increased by more than 5 times over the past 23 years. Between 2003 and 2014, average annual deductibles for family coverage in Alaska more than doubled as a percentage of median income. At 33.33%, the Health and Social Services budget was the largest single portion of the agency operating budget in FY 2018.
15 Alaska versus U.S. spending Alaska s health-care spending has grown at a much faster than the U.S. average.
16 Alaska s health-care spending increased by more than 5 times between 1991 and 2014.
17 How much are family insurance premiums in Alaska? As of 2015, a family premium cost 21,089 dollars with 79.1% of it paid by the employer.
18 Deductibles have more than doubled as a share of median income.
19 Health and Social assistance is 33.3% of agency operating budget.
20 Medicaid services is 64.3% of the Alaska Department of Health and Social Services.
21 Medicaid spending and enrollment Medicaid enrollment is extremely sensitive to economic conditions. As a result of the long recession, enrollment over the last few years has grown considerably. In 2014, Alaska spent nearly twice as much per Medicaid enrollee than the United States. Alaska United States Total Population 737, ,563,000 Total Medicaid Enrollment 113,241* 65,548,000 Percent of Population Enrolled in Medicaid 15% 21% Total Medicaid Spending (State and Federal FY2014) $1,359,000,000 $446,703,000,000 Per Enrollee Medicaid Spending $ 12,001 $ 6,815 Per Capita Medicaid Spending $ 1,844 $ 1,402
22 final thoughts Overview Health-care spending growth is putting pressure on individuals, businesses, and the state government. There is no silver bullet but it does not mean we should wait for the perfect solution. All fiscal solutions should account carefully for the role of health-care.
23 final thoughts Overview Health-care spending growth is putting pressure on individuals, businesses, and the state government. There is no silver bullet but it does not mean we should wait for the perfect solution. All fiscal solutions should account carefully for the role of health-care.
24 final thoughts Overview Health-care spending growth is putting pressure on individuals, businesses, and the state government. There is no silver bullet but it does not mean we should wait for the perfect solution. All fiscal solutions should account carefully for the role of health-care.
25 Thank you Overview Thank You Mouhcine Guettabi Phone Number : mguettabi@alaska.edu
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Table 1 Economic Impact of the Local Healthcare System on Estill County. Multiplier Type Direct Impact Multiplier Total Impact
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