Democratic U.S. House candidate Callie Barr talked about health care costs in northern Michigan at a virtual press conference on Tuesday. Barr is running for Michigan's 1st District seat, which covers most of the northern lower and the entire Upper Peninsula. She ran in 2022 but got defeated by current Congressman Jack Bergman by 21.3%.
The virtual press conference had speakers Jamie Mills and Richard Douglass. Mills is a licensed consultant for employee benefits plans and Douglass is a social epidemiologist.
Their discussion was centered on health insurance, new Medicaid cuts and their impact on health care in northern Michigan. Barr called for an extension of tax credits for the Affordable Care Act.
"Hospitals are having a tough time," Barr said. "Without ACA subsidies, our health insurance costs are going to go up."
Barr expressed concern that people won't be able to afford insurance, which will in turn cost hospitals.
This is because having a high number of uninsured patients means hospitals will have to provide more of what is known as "uncompensated care," when hospitals provide care for no payment. This leads to higher costs for uninsured patients and leave hospitals less financially stable.
Mills said at rising costs will force patients to go to the emergency room, which is often costly and isn't the best care.
"If Medicaid cuts go through, as they're mentioning, hospitals are already raising their prices. Physicians are raising their prices because they know what's coming down the pipe," Mills said. "They're going to have quite a bit of uncompensated care, and with uncompensated care somebody has to pay for it"
As an employee benefit consultant, Mills said she's seen the cost of employer insurance plans rise.
"Employees will delay going to the doctor, will delay going to see a specialist," Mills said. "Because of the cost and having to front that money until the employer plan or the insurance company pays."
According to a study by the University of Michigan, when states don't expand Medicaid, hospitals shut down. If hospitals shut down, residents will have to travel on average, 20 miles further for common care and 40 miles further for specialized care.
Douglass said Medicaid cuts will hurt nursing homes and the aging population. He says without Medicaid, homes will close leaving nursing home patients stuck in hospitals. "They may be sent out of state, like Wisconsin, where there might be a bed available," Douglass said.
"That bed will be paid for by Medicaid at five or six times the rate in the hospital than it would have been costing Medicaid if the nursing home stayed in business."
Barr is one of three Democratic candidates for the seat. In addition, one Republican is running a primary challenge against Bergman.
