Bucking trend, more Nevadans gain health insurance

Erica D. Johnson

Monday, Oct. 7, 2002 | 11:10 a.m.

The percentage of Nevadans who had health insurance grew from 1999 to 2001, bucking the national trend that showed fewer people had coverage, a recent survey by the Census Bureau says.

The report, "Health Insurance Coverage 2000," showed a drop in the percent of uninsured Nevadans after surveying more than 4,000 households in the state. For greater statistical reliability, it combined survey results from 1999 and 2000 and compared them with average results from 2000 and 2001.

The survey showed 16.5 percent of Nevada households were uninsured in 2000 and 2001, compared with 17.7 percent in 1999 and 2000.

The results contradicted the national trend, which showed the number of households without health insurance rose to 14.6 percent in 2001 from 14.2 percent in 2000.

"The economy is a critical factor," said Keith Schwer, director of UNLV's Center for Business and Economic Research. "Historically, most people get health insurance through employment. In 2000 Nevada had a strong economy. A tight labor market results in more health coverage."

Nevada was not the only state that saw a decrease in the percent of the uninsured. Montana and New Mexico saw decreases of more than 2 percentage points.

But local experts say the numbers do not reflect the economic downturn since Sept. 11, which hit Nevada especially hard.

"Things changed dramatically," Dale Pugh, assistant administrator of University Medical Center, said. "Here in Nevada, after Sept. 11, thousands of people in the hospitality industry became unemployed and as a result lost their health insurance."

Pugh said even before the terrorist attacks, the hospital had seen an increase in uninsured patients. UMC is the only hospital in Southern Nevada that treats all patients, regardless of their ability to pay.

In its 2002 financial summary, the hospital reported seeing a "dramatic" upswing in uninsured patients beginning in March 2001. The increase was compounded after Sept. 11. UMC cared for about half of all patients who could not pay and 60 percent of Medicaid patients.

If Clark County Social Services determines a patient at UMC qualifies for its services, Pugh said, it reimburses the hospital. Clark County Social Services reimbursed UMC $28 million during the hospital's last fiscal year, which ended July 30.

When patients can't pay but don't qualify for government assistance, the hospital takes a loss. The number of these patients jumped nearly 28 percent from 2001, UMC figures showed. This cost the hospital $7.1 million in revenue losses.

Charles Duarte, an administrator for Medicaid and Nevada Check-Up, the state's health insurance program for uninsured children not covered Medicaid, also found the survey's findings a poor indicator.

Both programs have seen significant increases in uninsured people since 1999, he said. There are currently 165,000 people on Medicaid in Nevada. The program is operating on a budget for 133,000 people.

"We've been looking at a lot of cost containment efforts in order to keep the shortfall as small as possible," Duarte said. "We've reduced provider rates and frozen rates for physicians and nursing facilities. Normally we could have increased these rates if the funds were available."

Though survey results for 2002 won't be available for another year, experts expect they will show steady increases in the uninsured.

"My guess is that the number of people uninsured will continue to rise through 2002," said Leighton Ku, senior fellow at the Center on Policy Priorities in Washington. "Unemployment rates are higher this year than last year. Health care costs are substantially higher this year than last year. I would suspect things will be worse in 2002 than 2001."

The survey on health insurance is a supplement to the survey used to gauge monthly unemployment rates. Data in the health supplement is collected each March.