Rising insurance costs limit opportunities

May 10, 2005

DAWN DE BUSK/Frontiersman reporter

MAT SU - Many of the people who have chosen to serve the community by entering the social service field often can't afford adequate health insurance coverage for themselves, according to John Cannon, executive director of Mat-Su Services for Children & Adults.

"In human services, some of our employees aren't the highest paid. Some people have dropped out of our health coverage plan because they can't even afford to pay 10 percent," Cannon said.

"The bottom line is: As an agency, we're dealing with finding affordable health-care insurance for our workers. We just got word from our carrier we got a 15-percent increase this year and a 24-percent increase occurred last year," Cannon said. He said his agency uses Aetna.

In Alaska, the health insurance options provide less freedom than nationally. There are only a few carriers up in this state, Cannon said.

With fewer choices for employers who run social-service agencies or small businesses, the employee ends up with a reduced number of alternatives, too.

Social-care workers who can't meet their budget needs while paying a portion of their health insurance premium often opt to drop a spouse or other family member, paying only to have themselves insured, according to Cannon.

It becomes harder for those employees with families to afford insurance and make ends meet when their spouse isn't working or they make too much money for Denali Kid Care.

"The cost of medical insurance is going up in double digits every year," said Donn Bennice, chief executive officer with Alaska Family Services.

His agency provides medical benefits, paying approximately 90 percent of the health insurance cost for workers. "A good percentage of our employees cannot afford to carry insurance to cover family members," Bennice said, adding that those employees are restricted by monetary pressures to only list themselves as policy carriers.

It works out if the spouse works, but budgeting good health-care coverage becomes difficult for the single parent, he said.

Denali Kid Care has lost strength over the years, Bennice said.

In 2003, Denali Kid Care, a state and federally funded program, funded at 200 percent of the poverty level, which, in Alaska last year, was set at $23,570 for a family of four, according to the Federal Register.

In other words, those making up to twice that amount - $47,140 - could qualify for coverage for their children or for themselves throughout the pregnancy. Denali Kid Care also provides health insurance for the new mother for about a month following delivery.

In 2005, the program's coverage was reduced to 150 percent of the poverty level - now, only those Alaskan families of four making up to $35,355 are eligible for coverage.

"The point is, the benefits are decreasing for children," said Maryalice Larson, chief executive officer with Behavioral Health Services of Mat-Su Inc.

Contact Dawn De Busk at 352-2252, or dawn.debusk@ frontiersman.com.