News > Report Outlines Long-term Blueprint to Approach Universal Health Insurance Coverage in New York State

NEW YORK, NEW YORK, December 19, 2006—The first comprehensive analysis of the elements needed to enable New York State to approach universal health insurance coverage was issued today—the results of a project conducted jointly by the United Hospital Fund and The Commonwealth Fund. The analysis, a report titled “Blueprint for Universal Health Coverage in New York,” projects the costs and benefits of several complementary and alternative strategies to create a more stable and affordable health insurance system. The “Blueprint” examines how almost all of the 2.8 million uninsured New Yorkers, or 15 percent of the state's population, could gain insurance coverage, and describes policies that would stabilize the insurance system.

“We see great potential in the expansion of our public health insurance programs through simplifying the application and renewal processes, but these changes alone will not get us near universal coverage,” says Jim Tallon, president of the United Hospital Fund. “This report presents a blueprint that will help inform the long-term process needed to get us there.”

“Ultimately, we need a national solution to the problem of 47 million uninsured in this country. But states cannot wait for federal action, and are moving forward with innovative solutions to address the most pressing problem facing our health care system,” says Karen Davis, president of The Commonwealth Fund. “The New York Blueprint presents workable options and calls for a shared commitment from the state and federal governments, employers, and individuals. By working together toward a common goal of ensuring coverage for all New Yorkers, we can take a major step toward achieving a truly high performing health system, and can serve as a model for the country. ”

Different levels of commitment from employers with 10 or more employees were modeled and combined with other elements, including expanded public insurance, a requirement of individuals to purchase insurance, and the State's provision of financial assistance to those individuals who cannot otherwise afford this insurance.

The report places the cost of the expanded coverage at approximately $4.1 billion—a cost shared by individuals, business, and the state and federal governments. While some will argue this is a sizeable increment in dollars, others will point out it is a small percentage of the $156 billion spent annually in New York's health sector.

“In approaching this challenge, we looked closely at the groundbreaking work done in Massachusetts,” says Danielle Holahan, senior health policy analyst at United Hospital Fund and an author of the report (along with Elise Hubert of United Hospital Fund and Cathy Schoen of The Commonwealth Fund). “All the components of this blueprint have analogues in the Massachusetts plan, but near-universal coverage in New York will be tougher. We start with less employer coverage and more people who are currently uninsured.”

Modeling of the estimated costs and coverage impacts of a range of expansion scenarios was prepared by The Lewin Group, using its Health Benefits Simulation Model. Among the findings from the modeling:
• Implementing the simplification and expansion of public health programs alone would achieve only a one-third reduction in the uninsured, and leave 2 million uninsured New Yorkers.
• Employer assessments—models range from $400 to approximately $3,200 per employee—would provide incentives for employers to offer coverage directly and raise some of the revenues necessary to finance other expansions.
• Availability of subsidized coverage through a new buy-in to Family Health Plus would improve the affordability of coverage for currently insured low-to-moderate-income individuals and families, compared with what is currently available through employer-sponsored and non-group insurance.
• An individual mandate is required to achieve universal coverage.

The full “Blueprint for Universal Health Coverage in New York” report and the supporting technical materials can be found at Blueprint for Coverage.

About the United Hospital Fund: The United Hospital Fund is a health services research and philanthropic organization whose mission is to shape positive change in health care for the people of New York.