The slump in the job market is affecting more than just the state's unemployment rate.
North Carolina is facing the fastest-growing number of people without health insurance in the nation in part because the insurance system is primarily based on employer-based coverage.
The N.C. uninsured rate increased 22.5 percent from 2007 to 2009 the fastest-growing in the nation according to researchers.
As of January the number of uninsured people in North Carolina was an estimated 3220 the fourth highest in the nation.
A recent study by UNC and the N.C. Institute of Medicine suggested the high uninsured rates could increase health costs across the state.
Such increases in health care costs forced David Penkava Asheboro resident to change his lifestyle. He lost his job at Hanesbrands a Winston-Salem-based manufacturer three years ago but he was not initially worried because he still had health insurance.
But when his insurance company increased premiums from $126 to $1000 per month he was forced to sacrifice his retirement to make payments.
Since his wife is not yet old enough to be eligible for Medicaid and suffers from diabetes" he had to go back to work at age 64.
""I don't mind working. My problem is that I can't be at home with my wife to take care of her"" he said.
Penkava, who also had open heart surgery, said he soon learned that individual insurance plans were not an option because their premiums are not affordable for lower income, high risk people.
My biggest concern in life is health care — the cost of it and the ability to have it" he said.
All three of Penkava's sons recently lost their jobs as well and are currently living uninsured.
Of course my story is a lightweight compared to those that do not have any insurance he said.
And the number of uninsured is on the rise.
The number of people without health insurance is expected to continue increasing as unemployment rates in North Carolina rose to a record 10.7 percent in February.
We know the job market recovers slower than other aspects of the economy. This type of uninsurance will continue for a while" said Mark Holmes, vice president for N.C. Institute of Medicine.
The results show that for every percentage increase in unemployment, there is a 0.7 percent increase in uninsured rate, said Holmes.
As in Penkava's case, growing uninsured rates could affect the insured as well by driving up premiums and other health costs.
This cycle not only affects the uninsured" but it also affects the rest of us" said Kristin Milam, spokeswoman for the N.C. Department of Insurance.
When someone is treated at a facility but is unable to pay, that cost is absorbed by the facility and can add up to higher health bills.
The growing number of uninsured patients at UNC Hospitals is causing the uncompensated care cost — money to treat uninsured patients — to rise to about $270 million this year, said Karen McCall, spokeswoman for UNC Hospitals.
She attributes this 25 percent increase in cost mainly to patients losing their insurance after being laid off.
For those who are struggling to find a job, the federal stimulus plan could lower costs for laid-off employees by providing a 65 percent subsidy for premiums.
The more uninsured people there are in North Carolina"" the more expensive it is for everyone in the state.""
And when people like Penkava's sons are laid off" it is even harder for them to pay the high costs of health insurance" creating even more uninsured.
""Since they're not working" they can't afford premiums" Penkava said. I don't know what they're going to do.""
Contact the State & National Editor at stntdesk@unc.edu.
