For Immediate Release
Thursday, October 28, 2004
For more information:
Bridget Devane, (732) 246-4772
bridget@njcitizenaction.org
–or–
Fabricio Rodriguez, (215)735.3615
phillyjwj@mindspring.com
New "Waste Not, Want Not" Report
Study shows $245 billion savings from cutting insurance and drug industry waste could fund health care for all
Groups release report to urge elected officials to stop the waste and use the money to fund health care for the 2.1 million uninsured in New Jersey
Trenton, NJ — Citizen Policy & Education Fund of NJ [now New Jersey Citizen Action Education Fund], New Jersey Citizen Action and Philadelphia Jobs with Justice released a report on October 28, 2004 showing that approximately $245 billion is wasted on private insurance red tape and protecting drug company super-profits each year. The study concludes that by providing insurance more efficiently and making drug companies sell in a more competitive market, the savings could be used to provide secure, affordable health care for all. (Here is the NJ report.)
"The drug industry will reap the benefits of $139 billion dollars when the new Medicare prescription drug law goes into effect, and the insurance industry is already seeing their rewards in the form of subsidies from this law. Meanwhile, consumers are left holding the bag as health care costs are skyrocketing out of control and little is being done to lower costs for health care consumers," said Bridget Devane, New Jersey Citizen Action, Organizer.
The report, Waste Not, Want Not: How Eliminating Insurance and Pharmaceutical Industry Waste Could Fund Health Care For All was also released by local Jobs with Justice coalitions or other organizations in CA, FL, GA, IN, KY, MA, MN, NC, NY, OH, PA, RI, TN, TX, and VT.
"Political leaders have to look at controlling the skyrocketing costs if they want to confront the health care crisis," said Fabricio Rodriguez, Philadelphia Area Jobs with Justice, Director. "We have to stop employers from shifting costs onto workers. Only when health care threatens profits will this problem be dealt with," added Rodriguez
Waste Not, Want Not focuses on how three reforms to the current health care system could prevent billions of dollars in waste and yield enough savings to guarantee secure and affordable health care for all. Specifically:
- The fragmented system of nearly 1,300 private health insurance companies creates unnecessary red tape and administrative waste. The national Medicare program has a proven track record of providing insurance at slightly less than one-tenth the cost of private plans. Adopting Medicare's standard of efficiency and improving and expanding it to cover everyone, would save $3.1 billion in New Jersey and more than $94 billion on health care every year for the nation.
- Although the federal government and other public sources already pay half the cost of research and development, drug companies receive long term patent protections that discourage competition and guarantee super profits. If the federal government paid for all of the R&D, it could eliminate the patent protections, encourage competition and generic drugs, and save $4.6 billion in New Jersey and $140 billion nationally in health care costs every year.
- The Bush Administration's recently enacted Medicare prescription drug bill gave additional subsidies for private insurers because they can't compete with the efficiency of Medicare. New Jersey’s share of these insurance subsidies would be $240 million. Reversing these and other devastating changes to Medicare could save $83.6 billion (or $11 billion a year) over the next eight years.
"Americans are paying more for health care and getting less every year. Waste Not, Want Not is proof that we are not just spending more than any other country, we are wasting more," said Dudley Burge, Communications Workers of America, Local 1032. "Instead of throwing away precious health care dollars on bureaucracy, fragmentation and excessive profits, we could be providing high quality medical care for all."
Taking these three sources of potential savings together, there would be sufficient money to insure 164.3 percent of New Jersey's 2.199 million uninsured populations. Nationally, these savings would be more than enough to provide insurance coverage for all of the 81.8 million people who went without health insurance for all or part of last year across the country.
"So many politicians say they support the concept of health care for all, but then hide behind the question of how a universal plan would be financed," said Rev. Bruce Davidson, Lutheran Office of Governmental Ministry in NJ. "This study shows that health care for all isn't an economic problem; it's a question of political will. Across the country, people are building a movement to force politicians to stand up to the special interests and pass laws for secure and affordable health care!"
Waste Not, Want Not is based on an analysis of government census and economic data done by the Center for Economic and Policy Research (CEPR), located in Washington, DC.
The report is available on the Jobs with Justice website at www.jwj.org and www.cpefnj.org.
Citizen Policy & Education Fund of NJ (CPEF) is a nonprofit, 501c(3) organization, founded in 1983, promoting the empowerment of low- and moderate-income people through research, education and training on public policy issues. CPEF works with the state’s largest citizen watchdog coalition, New Jersey Citizen Action (NJCA), a 501c(4) nonprofit founded in 1982. NJCA, with 60,000 family members and over 100 affiliated groups, organizes on key issues including quality health care for all, community reinvestment and fair banking, campaign finance reform, a safe and clean environment, and other issues including worker, consumer, and victims’ rights.
Jobs with Justice is a national campaign for workers' rights. More than 40 local Jobs with Justice coalitions unite labor, community, faith-based and student organizations to build power for working people.
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