Underinsured kids cost state economy more, study finds

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Medical care is expensive, especially without insurance. And the uninsured cost taxpayers -- especially when it comes to kids, according to a new study by a Brigham Young University professor.

The article, published today in the journal Pediatrics, tracked health care transactions for insured and uninsured children in the Phoenix, Ariz., metropolitan area.

The study focused on two groups of poor children: those on state-sponsored insurance programs and those who were uninsured.

Those who were uninsured were most likely uninsured because they were either deemed ineligible for the programs or they couldn't afford the premiums and co-pays.

Butler said cutting state health insurance programs in an effort to save money actually costs taxpayers more money. The extra cost is picked up by taxpayers or hospitals, which would most likely pass it on to other consumers.

"The problem is, in this case, it's a false economy," Butler said.

Nathan Checketts, director of Utah's Bureau of Access, acknowledged that though he hadn't looked at the study the scenario could be a possibility in Utah.

It found that uninsured children ended up costing taxpayers and hospital patrons an extra $2,121 per child per year.

BYU professor Richard Butler worked on the study with colleagues from Arizona State University. "The actual total costs to society are actually going to rise when the kids leave insurance," Butler said.

Checketts said there are 27,713 Utah children enrolled in the publicly funded Children's Health Insurance Program. In 2005 there were 24,000 uninsured children who were probably eligible for CHIP but were unaware that they qualified or who hadn't signed up.

The study found that uninsured children are less likely to go to a doctor's office for preventative care. Instead, they end up at the emergency room once they have a medical condition that has advanced and requires more expensive treatment.

"That's the value of insurance," Butler said. "It allows kids to go to a doctor's office where they can get more appropriate, earlier care."

Though the study was done in Arizona, Butler believes the same situation could exist in Utah. The numbers were the same for Hispanic and white children.

Beginning July 1, some premiums and co-pays are going to increase for CHIP users in Utah. Checketts said the program will see more increases next summer. But as the costs increase, the program is planning to extend coverage to more children.

Brittani Lusk can be reached at 344-2549 or at blusk@heraldextra.com.

This story appeared in The Daily Herald on page A1.

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