The health care crisis is debilitating for those in poverty

The health care crisis is debilitating for those in poverty

by | Jul 29, 2019

The health care crisis is debilitating for those in poverty

A look at the correlation between health care insurance coverage and poverty in Georgia reveals some sobering facts:  

  • 41 percent of uninsured Georgians have annual incomes at or below $35,535.
  • Lack of insurance coverage is one of the prime reasons why life expectancy for those in poor neighborhoods is fully 10 years shorter than in the richest areas. 
  • Premiums in the individual health insurance market have more than doubled since passage of the Affordable Care Act (ACA) in 2010. 
  • For low-income families and those stuck at or below the poverty threshold, healthcare is one of the top expenses and plays heavily into the welfare cliff, which keeps folks mired in poverty. 
  • Despite generous government tax credits, premiums for low-income families on the ACA health care exchanges are still unaffordable. 

“The health care crisis is a poverty crisis.“

Clearly, America’s failing healthcare system disproportionately impacts the poor. And despite multiple federal and state programs aimed at creating a safety net, the poor still aren’t getting adequate health care. The bottom line is that our health care crisis is a poverty crisis. 

 

A complicated, fragmented system

Imagine going to the doctor and not knowing whether your visit will be covered or what you should expect to pay. That’s the exact scenario that plays out for millions of low-income Americans every week. That’s partly because of rather than receiving health care coverage through one unified plan, low-income families in Georgia frequently cobble together fragmented plans.

For Georgians under the age of 18 living in a family at 138 percent of the poverty level or less, 60 percent have different coverage from their mother and 70 percent have different coverage from their father.  

And depending on individual circumstances, health insurance can come through a job, individual markets, ACA exchanges, and government programs such as Medicaid, PeachCare, Medicare, TriCare, VA services, and the Indian Health Service—all with different rules for eligibility.

 

The time is ripe for meaningful reforms in Georgia

Instead of simply expanding Medicaid and trapping more people in the welfare system, we must explore options that help pull people out of poverty.

The solution is a consumer-directed market system coupled with a reform safety net program that achieves universal coverage for all Georgians by:  

  • Untethering health care from its close association with employment so that people won’t lose their insurance because they lose or change a job.
  • Making shopping for health insurance just like buying any other insurance product so that consumers can identify coverage and price options—and compare apples to apples.
  • Providing subsidies from the government—run by the Georgia Gateway—to allow low-income individuals and families to purchase insurance on the private market. This system would be means-tested by an eligibility engine that eliminates welfare cliffs and marriage penalties.

 

A Hope For Georgians

The good news is that the President’s Administration is encouraging states to come up with their own solutions to the health care crisis through federal waiver applications. This means Georgia has a unique opportunity to enact meaningful health-insurance reform that not only addresses the health care crisis, but also helps pull families out of poverty.

Read more: A Real Solution for Health Insurance and Medical Assistance Reform

Read more: What Does an Ideal Solution to the Health Insurance Crisis Look Like?

GCO releases new reports describing the best path forward for Georgia’s federal healthcare waivers

GCO releases new reports describing the best path forward for Georgia’s federal healthcare waivers

by | Jul 18, 2019

Today, the Georgia Center for Opportunity (GCO) has released two new reports detailing precisely how the Georgia governor and lawmakers should enact federal healthcare waivers that will reform a healthcare system disproportionately impacting the poor.

In What Does an Ideal Solution to the Health Insurance Crisis Look Like? Principles for Policymakers When Crafting a Federal Waiver Application, GCO scholar Erik Randolph describes the ways that Georgia lawmakers can craft a healthcare system that works for everyone, particularly the most vulnerable. And in What Census Microdata Tells Us About Health Insurance Coverage in Georgia, Randolph delves into some lesser known facts about the healthcare system in Georgia in order to better help lawmakers craft a system that helps those in poverty and boosts economic mobility.

Randy Hicks, GCO’s President and CEO, said the new reports come at a crucial time for healthcare reform in Georgia. “Due to a federal waiver application process approved by the Trump Administration, Georgia has a narrow window of opportunity to innovate at the local level to solve the healthcare crisis,” Hicks said. “More than 13 percent of Georgians still lack health insurance, and the cost of insurance in the individual markets have more than doubled since the enactment of the Affordable Care Act. We need a real solution to this crisis. This report lays the groundwork.”

The reports recommend the creation of a consumer-directed market system coupled with a reformed safety-net program. Key recommendations include:

  • Freedom and portability:Just like with other insurances, consumers want the leeway to shop for health insurance on their own terms and to not lose their plan when leaving a job. This solution drives down costs and keeps affordable health coverage long after they leave employment.
  • Affordability: There is a simple reason why 13.3 percent of Georgians lack any health insurance: affordability. As demonstrated by systems in Switzerland and the Netherlands, the solution is to achieve universal coverage. GCO’s healthcare proposals will create a market-driven program with safety-net subsidies, leading to universal coverage. Pricing will be transparent and consumers will easily shop for the best values.
  • A unified system: The current healthcare system is a fragmented hodgepodge of programs—Medicaid, PeachCare, Medicare, TriCare, VA services, and government-run exchanges. Contrary to this confusing system, GCO reforms would create a single program with government subsidies for low-income families that eliminate welfare cliffs and marriage penalties.
  • The safety net: The system still provides a vital safety net for those who aren’t able to afford health insurance on their own. Subsidies are provided through the Georgia Gateway to help low-income families pay their premiums.

 

Join GCO In Sharing Your Inspirational Family Photos

Join GCO In Sharing Your Inspirational Family Photos

by | Jun 10, 2019

The kids are on summer break and the parents are looking to make the most of the time together.
What do you do? Family road trip? Go to the park for a barbecue? Head out to the local ballpark and catch a game?

Family Activities Equals Family Values

Whatever you do this summer, do it with the purpose of connecting (or reconnecting) with family.  Join GCO’s Healthy Family Initiative as we promote and foster family-promotion.

While many understate the importance of family, we know that a strong family can lead to the support necessary for opportunity.  This is especially true to those that are stuck in poverty.

Share and Inspire

Because of this we are asking everyone to share and tag their family fun on social media with the hashtag #HFISummerFun.  This lets your followers and all that use the tag view and be inspired by the value of a strong family.

Even if you don’t have pictures of your own to share, simply liking or commenting can go a long way to get out the message of the importance of family.

Best-selling author Tim Carney offers insights on America’s economic, cultural problems

Best-selling author Tim Carney offers insights on America’s economic, cultural problems

by | Jun 4, 2019

America is in an economic and cultural crisis, as millions lack the tools that make a fulfilling life: A great education, stable job, and healthy relationships. The chief question, of course, is how to best connect our neighbors with opportunities that lead to a flourishing life.

Tim CarneyTim Carney—best-selling author, Washington Examiner commentary editor, and a visiting fellow at the American Enterprise Institute—has some excellent answers in his latest book, Alienated America: Why Some Places Thrive While Others Collapse.  Tim will be highlighting his findings at this years Breakthrough event in Atlanta, GA.

Hot off the press in February, Alienated America examines the dissolution of our nation’s most cherished institutions—nuclear families, places of worship, and civic organizations. In this his third book, Carney chronicles how life is getting worse for people in some parts of the country because folks are facing their problems alone.

And after visiting all corners of America and digging deep into the data, Carney concludes what we here at the Georgia Center for Opportunity (GCO) have been saying for years—failing social connections are driving a great divide in America that can’t be fixed solely with job-training programs or more entitlement spending.

Specifically, Carney makes the case that just three groups represent most of America: the elites, the religious conservatives, and the alienated. And while community and civil society has been eroding across all groups across the nation in recent years, it has not done so equally for each group.

In alignment with GCO’s view, Carney argues that working class people in America are currently suffering more than other groups because they no longer have the institutions to connect them to others—and provide an all-important sense of purpose. It’s this profound lack of belonging—and an inability to see this disconnect—that drives a sense of alienation that not only divides us as a nation, but tragically leads to despair and an erosion of individual self-worth and belief in opportunity.

While the problems before us as a nation often seem daunting, the good news is that both GCO and Tim Carney’s Alienated America present a framework for positive community-focused solutions that overcome deeply entrenched obstacles to opportunity and unleash prosperity at the individual, family, and community levels.

We’re thrilled that Tim Carney will be joining us for Breakthrough 2019 on September 11 in Atlanta. The event brings together some of America’s most innovative researchers, policy experts, and community-based practitioners to lead timely discussions on solutions that unlock human potential—and enable individuals, families, and communities to flourish in Georgia and around the country. Stay tuned over the course of the summer as we announce additional event keynote and discussion panel speakers.

Successes During the 2019 Legislative Session

Successes During the 2019 Legislative Session

by | Jun 3, 2019

As the dust settles on another Georgia legislative session, we are pleased to report that the overall results for bills that GCO worked on to achieve passage were positive and encouraging.

 

Education Opportunities Expand Once Again

For starters, in the education arena we collaborated with key legislators to put into action House Bill 787, which had been approved by the legislature in the previous session. This new law creates equitable facilities funding for charter schools—allowing them to receive funds for their facilities on par with those given to traditional public schools.

 

Job Licensing Reform

On the employment front, our team successfully worked to pass a key piece of occupational licensing reform legislation. Now, people who get behind on their student loan payments won’t risk losing their occupational licensing—helping to ensure that more Georgians will be able to get a good job and keep it after completing their education.

 

Removing The Welfare Cliff of Healthcare

On welfare reform, we worked with Governor Brian Kemp’s administration to move forward healthcare waivers for Georgia. This crucial step toward full welfare reform would remove built-in benefit cliffs while adding work requirements for public assistance. Ultimately, this helps our fellow Georgians break free from governmental dependency and lead renewed lives of dignity and purpose.

 

We Are Just Getting Started

While we are proud of these successes, there’s still much work to be done in the next legislative session, particularly in the educational arena. Unfortunately, lawmakers fell short of passing Educational Savings Accounts (ESAs) this year. However, the good news is that we came closer than ever to success—and we’re optimistic that ESAs will become a reality next year. In fact, the high level of co-sponsor support from Governor Kemp’s floor leaders signals that this important issue will likely return for consideration in the next legislative session.

When it comes to ESAs, the stakes are high for thousands of Georgia students and their families. Not only would ESAs help parents like Katie Gonzalez—a mother of seven adopted children, including six with special needs—they would offer much-needed flexibility and assistance to students from low-income families, those adopted from foster care, children of active duty military stationed in Georgia, students with an Individualized Education Program, and those with a documented history of being bullied.

 

Looking Ahead

Looking ahead to 2020, GCO will continue to work toward implementing common-sense reforms on not just ESAs, but also in welfare and occupational licensing to ensure that every Georgian has the opportunity to flourish through a great education, steady employment, and healthy family life. The bottom line is that we are optimistic that the legislative successes coming out of the 2019 session will translate into passage of more key legislation next year.

Ready to work, right out of high school

Ready to work, right out of high school

by | Apr 29, 2019

Georgia’s public-school teachers should be proud of the work they’ve done to raise graduation rates in our state. Since 2011, graduation rates have increased by more than 14 percent, with 81.6 percent of the class of 2018 graduating. It’s an improvement that has moved Georgia, mercifully, out of the bottom tier of states. This is no small achievement and marks a dramatic improvement in the opportunities and prospects for the students who would not have graduated otherwise.

But graduating high school is not enough to ensure that our students succeed as they launch into the critical first years of their adult life. While college attendance is an important next step for many Georgia students, it’s not the route that most take.

According to a recent study from the University of Pennsylvania, only 31 percent of 18-24-year-olds in Georgia are in college. Of those who do attend college, completion isn’t guaranteed. According to research from the Georgia Governor’s Office for Student Achievement, only 27 percent of the class of 2012 (the most recent year available) had a bachelor’s degree, associate’s degree, or certificate five years after graduating from high school.

And then there’s the large number of young adults in the state who are still trying to find their way years after high school. According to the Annie E. Casey Foundation, in 2017 Georgia had 123,000 young adults aged 20-24 who were neither in school nor working. That’s nearly one in five people in that age group.

So, if nearly 70 percent of students are not going to college and a very high percentage are still floundering into their early 20s, what’s the solution for helping them find a path to a rewarding, self-supporting career?

An important answer, according to Dr. Robert Lerman of the Urban Institute, is apprenticeships—where students start working while high school juniors and seniors in fields that lead to credentials and, importantly, careers immediately after graduation. Dr. Lerman’s work researching apprenticeships spans decades and covers most of the globe. His research has shown that apprenticing is one of (if not the most) effective way to ensure that students who are not college bound find their way into a well-paying, sustainable career.

In the last two years, GCO has worked with Dr. Lerman to research the role of apprenticeships in Georgia and to provide recommendations on how to expand an already well-structured program into one that meets student demand.

Dr. Lerman’s most recent report, released just this week, focuses on Georgia’s Youth Apprenticeship program, created in the mid 1990s with fewer than 400 student participants. Today, the program has grown to more than 3,000 students in nearly 350 schools across the state. State funding of the program is relatively modest at $3 million annually and mostly funds program coordinators who oversee student participation and work to attract businesses to offer apprenticeship opportunities.

According to the report, demand for apprenticeships of this kind is high in Georgia. Dr. Lerman has estimated elsewhere that Georgia needs nearly 100,000 apprenticeships in order to meet that demand. Why hasn’t apprenticeship availability kept pace with student demand, according to Dr. Lerman? Based on interviews and surveys of program coordinators, the primary answer is that companies are skittish to offer jobs to high school students. This is due to the fear of liability for such young workers and related costs.

But, according to Dr. Lerman, these fears are largely unfounded and based on inaccurate assumptions about what the law requires and the cost of hiring younger workers. He cites Southwire as a prime example of a company that has successfully embraced apprenticeships since the 1990s and now employs more than 300 students. And Southwire has intentionally sought out students who are known to be at risk of falling into poverty and suffering from related issues, complexities not faced by the majority of students who would seek apprenticeship opportunities.

For the companies that are currently providing apprenticeships, Dr. Lerman points to regular reports of high levels of satisfaction (more than 90 percent) as a reason to be optimistic that, with accurate information and an opportunity to participate, more companies can be convinced to join the effort.

And, at GCO, we believe now is the perfect time to expand apprenticeships in Georgia. As the chart below demonstrates, the job market is tight in a way that hasn’t been seen for nearly two decades, with more job openings than job seekers. Surely now is the time to scale up apprenticeships to create a pathway from high school to work for those hundreds of thousands of students and young adults in our state who are not college-bound but are full of potential and have great things to offer to any company willing to take a chance on them. We owe it to them to make it happen.