Poverty, Uninsured
Rates Rise in 2003
On August 26th, the U.S. Census Bureau reported that, in 2003, 35.9 million
people were living in poverty (an increase of 4.3 million newly poor since 2000)
and 45 million people lacked health insurance coverage.
For the third consecutive year the poverty rate and the percentage of those
uninsured have increased. In 2003 alone, an additional 1.3 million people fell
below the poverty line. Of those, 733,000 were children. Now nearly
18 percent of children in the United States are living in poverty. Of the
35.9 million people living in poverty, 15.3 million (43 percent) are living in
deep poverty — with cash incomes below half of the poverty line. This is
the highest share on record.
In 2003, an additional 1.4 million people entered the ranks of the uninsured.
Because of increased participation in Medicaid and the State Children's
Health Insurance Program, the proportion of children without health insurance
coverage remained constant at 11.4 percent. Were it not for those public
programs, levels of uninsured children would have increased, as employer-based
health care coverage declined in 2003. What do these numbers mean?
How are Congress, the Administration, and the Presidential candidates responding?
And how can Presbyterians work to decrease the ranks of the uninsured and impoverished
in our own country and communities? What do these numbers mean?
The data released by the Census Bureau are from the Current Population Survey
Annual Social and Economic Supplement, which provides estimates of income and
health insurance at both the national and state levels. The Census Bureau
also released data from the American Community Survey, a separate survey providing
social, economic, and housing data for many levels of geography, particularly
local communities. Further information about both surveys is available at
www.census.gov.
Poverty Statistics:
As defined by the Office of Management and Budget and updated for inflation
using the Consumer Price Index, the average poverty threshold for a family of
four in 2003 was $18,810; for a family of three, $14,680; for a family of two,
$12,015; and one person, $9,393.
The national poverty rate is now 12.5 percent, totaling 35.9 million people.
Of those, 12.9 million are children. Alarmingly, the number of people in
poverty with incomes below half the poverty rate jumped by 1.2 million in 2003,
to 15.3 million. Of all poor families with children, more than two-thirds
included one or more individuals who worked in 2003. In 2003, the
poverty rate for non-Hispanic whites was 8.2 percent, for African-Americans it
was 24.4 percent, for Asian Americans, it was 11.8 percent, and among Hispanics,
it was 22.5 percent. The three-year average for American Indian and Alaska
Natives was 23.2 percent.
State poverty rates range from 18.5 percent in Arkansas to 6 percent in New
Hampshire. As measured by the American Community Survey, local communities'
poverty rates also vary greatly: the survey found that Hidalgo County, TX
had a poverty rate of 38 percent, while Somerset County, NJ had a rate of 1.7
percent.
Health Insurance Statistics
Forty-five million people are now uninsured, the highest number on record.
This is an increase of 1.4 million in 2003. 15.6 percent of the population
are now uninsured, the highest rate since 1998. More than 10 million young
people, ages 25-34, are going without health insurance, an increase of 576,000
from 2002.
Why are the ranks of the uninsured increasing? Dr. Daniel Weinberg,
Chief of Housing and Household Economic Statistics at the U.S. Census Bureau observed,
"The decline in coverage rates is mostly explained by the decline in coverage
from employment-based plans, partially offset by increases in government coverage."
Dr. Weinberg added, "employment-based health insurance coverage fell 0.9
percentage points between 2002 and 2003, while Medicare coverage increased 0.2
percentage points and Medicaid and State Children's Health Insurance Program Coverage
increased 0.7 percent." The Center on Budget and Policy Priorities noted
that this decline in employer-based coverage was "spurred by continued escalation
in the cost of health insurance, sluggish job growth, and the relatively high
unemployment levels that persisted in 2003." The Center added that
the rate of individuals covered by their employer, now 60.4 percent, is the lowest
level of employment-based insurance coverage since 1993.
Though there was a 1.8 percentage point decrease in the number of children
covered by employer-based coverage, public programs, including Medicaid and the
State Children's Health Insurance Program, helped to keep the rate of uninsured
children stable at 11.4 percent.
How are elected officials responding to the Census statistics?
These U.S. Census Bureau figures were released in late August — a time
when Congress is in recess and both Senator Kerry and President Bush were campaigning
for President. The Los Angeles Times noted that, "in responding
to the Census Bureau numbers, the Bush campaign and conservative analysts tried
to accentuate the positive. In a statement, the campaign noted that the data were
from last year and missed the upturn of 2004."
Democratic Presidential candidate John F. Kerry responded to the new statistics
by noting that during the last three years, during which Mr. Bush has been President,
5.2 million people have lost health insurance and 4.3 million have fallen into
poverty.
Prior to the release of the Census data, both candidates released plans for
health care. To learn more about their health care positions, click
here.
The U.S. Congress reconvened on September 7. Congress is scheduled to
remain in session until early October, when legislators will recess to focus on
campaigning and other district activities. This fall, Congress is expected
to focus on annual funding levels for federal programs, a renewed debate over
additional tax cuts, and intelligence issues.
Child Nutrition Programs
Regarding poverty-related issues, Congress did succeed in passing the
Child Nutrition Reauthorization Act (S.2507/H.R. 3873) earlier this summer, which
was signed into law by the President. The bipartisan legislation reauthorizes
many major nutrition programs through fiscal year 2009, including WIC (Women,
Infants and Children), school breakfast and lunch programs, and child and adult
care and summer food programs. Passage of this legislation means that more low-income
children and, in some cases, adults will have nutritious meals and snacks before,
during, and after school and in certain summer and child care programs.
Temporary Assistance for Needy Families (TANF)
Unfortunately, the Temporary Assistance for Needy Families (TANF) program
has not been reauthorized and amended to improve the program and to help lift
people out of poverty. The program is the cash assistance program that replaced
Aid to Families with Dependent Children in 1996. TANF, which expired in 2002,
has been operating under a series of continuing resolutions, to keep the program
operating for short increments. The current continuing resolution expires
September 30, 2004.
A thorough debate about TANF would give policymakers the opportunity to consider
various strategies to reduce poverty. Of particular concern is the new statistic
that 15.3 million people are now living in deep poverty — below half the
poverty line. This is the highest level of deep poverty recorded by the
Census Bureau (which began collecting this data 28 years ago). Congress
has not signaled that it will reauthorize this legislation this fall. However,
the Presbyterian Washington Office has signed a letter along with many other organizations
in the faith community calling on Congress to reauthorize TANF for five years
and to: increase funding for child care; retain the current work requirements;
extend benefits to immigrants; help families receive funds from enforcing child
support orders, expand education and training opportunities; and allow states
to waive or extend employment deadlines for people facing multiple barriers to
employment.
Low-Income Housing and Homelessness Programs
This fall, the House of Representatives may vote on the FY 2005 Appropriations
bill for Veterans Affairs, Housing and Urban Development, and independent agencies
(VA/HUD). On July 22, the House Appropriations Committee approved the FY
2005 funding bill for VA/HUD. While the Committee's bill increases funding
for Section 8 rent vouchers by 3.5 percent, to $14.7 billion and rejects the Administration's
"flexible voucher" proposal which would block grant the program, the
Committee would pay for this by cutting most other critical housing programs by
4 percent on average. Programs to be cut include homeless assistance programs,
elderly and disabled housing programs, housing for people with AIDS, and public
housing.
What Can Presbyterians Do About Poverty and Health Care?
As Presbyterians, many of us are responding to the needs of the least of these
among us in a variety of ways. Congregations help those in need through
soup kitchens, transitional living centers, job training and literacy programs,
health clinics, parish nursing programs, street outreach, and other programs.
In addition, many congregations and many individual Presbyterians speak out for
justice in the public square.
General Assemblies of the Presbyterian Church (U.S.A.) have spoken out repeatedly
for all to have life in fullness, including access to affordable, quality health
care for all. General Assemblies have also called on elected officials to
respond to the needs of those in poverty. For instance, in 1995, the 207th
General Assembly "call[ed] on congressional representatives to insist on
a government that follows ethical values of justice for the poor, welfare for
children, hospitality to the stranger, and assistance to the disadvantaged."
Recently, the Presbyterian Washington Office, along with other denominations,
sent a letter to both Mr. Kerry and Mr. Bush, expressing our concern about the
rates of poverty and the uninsured. We asked both candidates to provide
concrete answers of how they would respond to these issues. Specifically,
we asked:
- How will you reduce poverty, and specifically child poverty, in the next
four years?
- What will you do to reduce the number of people who lack health insurance
in the next four years?
- How will you address the inability of the nation's health care system to
provide affordable, quality health care to all?
- Will you commit to a specific goal to cut poverty in half by 2010?
Will you commit to a goal to increase the number of people who are insured
in the next four years? During this election season, speak out. Ask
candidates for office questions about poverty, health care, and other issues you
care about because of your Christian faith. For Election Year Do's and Don'ts,
click here. Find other ways to
get involved in our Christian and Citizen Election
Year Resource.
— Carolynn Race |