Insurelane Insurance Blog

A recent software upgrade at the U.S. Census Bureau turned up a some welcome news: the number of Americans without health insurance is less than previously thought. It turns out the Census Bureau had overstated the number of Americans without insurance by nearly 2 million people.

In 2005, the Census Bureau measured that there were 46.6 million uninsured Americans, when the actual number was 44.8 million. Now that the software glitch has been discovered, they’ve acknowledged that their numbers of uninsured have been inflated for at least 10 years.

The most recent population survey counted around 1.8 million Americans as “not covered” even though they reported having health insurance. The survey tabulates income, employment, and health insurance coverage data. No one is certain what caused the software error, and he Census Bureau has said no other questions were affected by it.

They’ve reissued the numbers for 2004 and 2005 and will also correct their data back until 1995.

“We are committed to ensuring that the nation has the most accurate numbers we can provide in a timely manner,” said Howard Hogan, Census Bureau associate director for demographic programs.

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The Oregon House of Representatives and the Senate have passed a healthcare bill to cover almost all of the state’s teachers under one state insurance agency. The agency will be overseen by a newly-created Oregon Educator Benefits Board — similar to the board that currently runs state employees’ health coverage.

The bill is set to go to Governor Ted Kulongoski, who’s expected to sign it into law. Kulongoski has been a long-time supporter of consolidating teachers’ health insurance into one agency.

“For more than 4 years, I have worked to enact responsible cost savings in our schools wherever possible — and put those savings back into the classroom. [This bill is] another important milestone,” said Kulongoski.

The bill is predicted to save $270 million for taxpayers in the next 5 years, freeing more funds to put into the school system.

Those who opposed the bill contend the state will monopolize teachers’ health insurance and won’t guarantee long-term savings.

But because healthcare costs for the state are expected to rise, lawmakers insist this bill is the right action.

“We all know that the crisis of rising health care costs will not go away — especially if we do nothing. The Legislature has the opportunity to do something now. Oregon taxpayers want their elected leaders to be good stewards of their tax dollars,” wrote Democratic State Senator Vicki Walker in an editorial.

“They want us to be accountable, save money when possible, and ensure that every child has access to a quality education. [This legislation] does just that,” she added.

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Generic drugs are often lauded as a way to make healthcare more affordable. But in some instances, the savings they offer is minimal. A recent Wall Street Journal article highlights the shortcomings of generics.

Large insurance companies have been successful in getting cheap generics for their members. But people who pay cash for their prescriptions may not have as much luck.

“We're not seeing that sharp a drop-off” in generic drug prices, according to Jim Yocum of the pharmacy data and software company DestinationRx Inc. “We're just not seeing it.”

The price paid for generic drugs often depends on where they are bought.

For example: on the website for national pharmacy chain CVS, 30 tablets of 20-milligram Zocor was selling for $154.99. The same dose of the generic version, simvastatin, was selling $108.99. By contrast, at the large warehouse retailer Sam’s Club, 30 tablets of 20-milligram simvastatin cost just $6.97.

Pharmacy representatives pointed out that they operate on different business models than large warehouse retailers such as Sam’s Club and Costco.

“We don't sell snow tires,” CVS spokesman Mike DeAngelis. “The core of our business is the pharmacy.”

Mr. DeAngelis did confirm that CVS makes a higher profit margin on generic drugs than on brand-name drugs.

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