Ohioans spend $62.2 billion on non-institutional health care each year

May 2 2007

Ohioans spend $62.2 billion on non-institutional health care each year, while the Ohio economy loses between $2.1 and $5.8 billion due to lost productivity and other indirect costs of having 1.3 million Ohio residents without health insurance, according to research released today by the Health Policy Institute of Ohio (HPIO).

The research indicates that a six percent increase, or $3.9 billion, in annual health care spending would stem the economic loss by ensuring all Ohioans are insured. Only two percent of the health care dollars spent in Ohio goes for public health, ranking the state 32nd in the country. The national average is 5.4 percent.

The Institute's report, "Mapping Health Spending and Insurance Coverage in Ohio", sifted through existing data from various sources to provide a snapshot of Ohioans' health and access to affordable health care compared to other Americans. For the full report, see http://www.healthpolicyohio.org/publications/maphealthexpend.html

The Institute found that Ohio mirrors the national health care dilemma, with high costs, widespread lack of insurance, insufficient investment in primary care and chronic illness management, burgeoning technology and significant disparities in how well residents of different geographic, ethnic and racial backgrounds are able to access quality health care.

"An important first step for improving the health care system in Ohio is to understand the current health care terrain," said William Hayes, HPIO president. "This report tells us how much Ohio is spending on health care, compares us to other states and highlights some specific areas where we have much work to do."

Local Angles

The research also uncovered disparities in how accessible high quality health care is to low-income and minority residents, as well as residents in specific geographic areas. Highlights include:

• About 20 percent of the adults in Noble, Fallia and Carroll counties didn't finish high school, which will limit job prospects and access to employer health insurance.
• Those in Appalachian counties have the lowest rates of health insurance coverage, while those in rural areas have the highest.
• In Central Ohio, the mortality rate from diabetes is double the national rate.
• Infant mortality rate for white Ohioans is six percent, while the rate for blacks is nearly three times higher at 15 percent. Overall, Ohio has the 15th highest infant mortality rate in the nation, with 7.8 deaths per 1000 births.
• Less than 10 percent of whites are without insurance in Ohio, while 20 percent of Hispanics and over 15 percent of blacks lack coverage.
• Several innovative programs in Ohio have resulted in improved health care delivery (see report). Other Facts
• Ohio experiences shortages in primary care physicians. Fifty-nine of Ohio's counties have at least one medically underserved area, with most of Ohio's metropolitan counties having multiple medically underserved areas.
• Ohio has the fifth highest percentage of smokers in the nation, with 25 percent of its residents who smoke.
• 10 percent of the Ohio population suffers from diabetes, above the national average.
• 3.3 percent of Ohio's economy is spent on state-funded health care, right at the national average and 22nd in the country.
• 10.5 percent of Ohio's total health care spending is devoted to nursing homes
• more than 46 other states and 42 percent above the national average of 7.4 percent. Ohio ranks 7th in population aged over 75 years old.
• Average Medicaid costs for seniors and Ohioans with disabilities are the 8th and 7th highest in the nation, respectively. For children, Ohio Medicaid spending ranks 47th.
• Average premiums for employer-based health insurance in Ohio rank between the 15th and 36th highest in the nation, depending on the category of health insurance. Employee-only premiums rank 15th lowest in cost while family coverage has the 15th highest average premium in the nation.
• Approximately 12 percent of Ohioans are uninsured, below the national average of 15.3 percent. About 46 million Americans are uninsured.

The research was prepared by Health Management Associates, a Washington, D.C.-based national research and consulting firm specializing in complex health care issues, and the Urban Institute, a nonprofit, nonpartisan policy research and educational organization also based in Washington, D.C.

The Health Policy Institute of Ohio is an independent, nonpartisan organization that forecasts health trends, analyzes key health issues, and communicates current research to Ohio policymakers, state agencies, and other decision makers. For more information on the Institute, call (614) 224-4950 or go to

http://www.healthpolicyohio.org/