Press Release

 

For Immediate Release

 

For More Information:

Jim Duffett 217.840.5850
Jess Lynch 312.913.9449

April 17, 2007

Nationally Renowned Health Care Economist Reports Illinois Covered Health Care Proposal will Save Businesses & Consumers $15.6 Billion by 2011

SPRINGFIELD - Dr. Ken Thorpe, one of the foremost health care economists in the United States, today released a report detailing how Governor Blagojevich's Illinois Covered health care reform plan would produce $15.6 Billion in savings for Illinois families and businesses in just four years through reduced health insurance premium growth.  Taking into account the cost of financing the reform plan over that period, the people of Illinois would realize a net savings of nearly $9 Billion between 2008 and 2011.

"Every dollar invested in the Illinois Covered health care plan will produce over two dollars in savings for Illinois consumers and businesses.  This is an initiative that will benefit every single person and business in Illinois that struggles with escalating health insurance costs," said Jim Duffett, Executive Director of the Campaign for Better Health Care.

 

The financial analysis, which Dr. Thorpe says is based on "fairly conservative assumptions", finds that by 2011, through the implementation of the Illinois Covered reform proposal, the average private insurance premium for a family policy would cost $1775 less per year than it would in the absence of reform. Between 2008 and 2011, Illinois employers would save over $5 Billion on health care premiums, an average decrease of 9% of their health care spending.

 

"Opponents of this plan are focusing on the costs of implementation, but investing in comprehensive health care reform ensures that health care will be affordable for everyone and actually saves us money," said Duffett,  "The Illinois Covered proposal puts us on a course that will guarantee more sustainable health care costs for years to come and makes sure that we all share responsibility for the health of our families and our state.  This initial $15.6 billion savings in just four years and a conservative estimated of over $30 billion over the next decade will result in the largest tax cut for Illinois families and businesses in the history of Illinois."

 

Without effective health care reform, Illinois health care spending will almost double in ten years - growing 1.5 times faster than the economy and more than twice as fast as workers wages.  Those who oppose the Illinois Covered proposal and prefer a "Do Nothing" approach would in essence be embracing a $15.6 billion "Do Nothing" tax on businesses and Illinois families over the next four years, and additionally forcing several hundred thousand more working Illinoisans to join the ranks of the uninsured.

 

Dr. Ken Thorpe's full report is available online at: http://www.cbhconline.org/HCJC/thorpestudy.html

 

Dr. Ken Thorpe is a nationally renowned heath care economist with extensive experience in policy analysis over a career that spans diverse positions in the public sphere and academia.  He is currently the Robert W. Woodruff Professor and Chair of the Department of Health Policy and Management at Emory University.  His calculations for this study are based on analysis of savings that would be generated through the implementation of (1) "Roadmap to health" chronic care management, (2) Electronic records and administrative savings, (3) reduction in cost shift to cover uninsured, (4) new programs with cost-containment measures - Covered Choices and Covered Rebate.