Health Resource Capacity Assessment for Danielson, Connecticut, June 2003

Health Needs and Barriers to Care: Funding and Healthcare Costs

The rising costs of health care combined with reductions in government support for health spending were mentioned by virtually every stakeholder as a significant challenge³¹. Health care costs rose 16.4% in Connecticut from the first quarter of 2002 to the first quarter of 2003³². Danielson was not exempt from these rising costs.

Businesses saw inflation for health care benefits far outpacing their profits. Focus group participants gave examples of $700 - 750/month and higher for family coverage. Special burdens on small businesses were emphasized. Stakeholders report more employers shifting those increased costs onto workers and some who are forced to drop coverage for employees completely. It is clear that businesses are very reluctant to take these measures and are seeking other options. It is also clear that, by and large, community members understand this and do not blame local businesses³³.

Recent state budget cuts fell disproportionately on services to low-income residents. Cuts have included reductions in payment levels across provider types, despite large increases in costs including insurance coverage and rents. One provider stated that his institution loses $30 on each physical and $65 for each dental visit under Medicaid³⁴. Public health programs targeted for cuts include substance abuse prevention programs, tobacco education, children's health initiatives, and breast and cervical cancer detection and treatment. Increases to mental health spending, long neglected in state funding, are beginning to be eroded³⁵. Cuts to HUSKY, Medicaid and SAGA have been devastating to Danielson (see Uninsured). One stakeholder stated, "They [the state] are just allowing the health care infrastructure to decay. We are on a crash course."

There is a perception among many in the Northeast corner that these cuts have fallen disproportionately on this rural area. Typical comments included³⁶:

• We get shortchanged up here. People think we are a rural community and so we don't have the same needs as the cities. It's not true.
• It's not fair. We pay the same taxes here in the Northeast corner, but we don't have the same systems. Services don't follow the need.
• Every year we have to juggle more balls in the air - do even more with less.
• The state is no help at all. When you meet with them, they act as if they know it all. They don't recognize the savings we represent to them.
• We are forgotten up here.

Growing medical costs, and other costs of living, are seen as a significant stress and barrier to care for Danielson residents. One stakeholder said, "People are really struggling, squeezing every dollar. It is very hard."³⁷

Next: Health Needs and Barriers to Care: Uninsured

Footnotes

31. Stakeholder interviews, focus groups
32. Connecticut Prices: Medical Prices Surge, but Weightier Food and and Housing Prices are More Stable, The Connecticut Economy, Spring 2003, Connecticut Center for Economic Analysis
33. Stakeholder interviews, focus groups
34. Stakeholder interviews
35. Budget Connections, Connecticut Voices for Children, January 2003
36. Stakeholder interviews
37. Stakeholder interviews