Immigrants and Health Insurance: Many Workers in Jobs That Offer No Medical Benefits
by
American Immigration Law Foundation
While anti-immigration advocates
would argue that newcomers are a drain on America's healthcare
system, a more careful analysis shows that immigrants represent
only a small percentage of the total population lacking
insurance. The problem of a large uninsured population in
America is not caused by immigration, but rather by escalating
costs of the entire U.S. healthcare system.
At a Capitol Hill briefing on July 18, 2000,
the Center for Immigration Studies (CIS) released a report
entitled "Without Coverage: Immigration's Impact on the Size and
Growth of the Population Lacking Health Insurance."[1] The
principal conclusion of the report is that "while other factors
have contributed to the problem, immigration has had an enormous
impact on the size and growth of the uninsured population in the
United States." Noticeably absent from both the report and
briefing was a systematic analysis of the economic factors
responsible for the health insurance crisis among people of all
backgrounds in the U.S., irrespective of immigration status.
Using data from the Census Bureau's March 1999
Current Population Survey, the report presents myriad statistics
on the role played by immigration in allegedly increasing the
ranks of the uninsured. One such statistic purported to show that
in 1998 immigrants and their families accounted for 26.1% of the
uninsured in the U.S., although they comprised 13.1% of the
population. As a result, the total uninsured population is larger
when the 11.6 million persons in immigrant households without
insurance are counted. The report recognizes, but never explores,
the underlying economic cause of this disparity: "many immigrants
hold jobs that do not offer health insurance, and their
comparatively low incomes make it very difficult for them to
purchase insurance on their own."
Immigration Status Not A Factor
As this comment suggests, and given that 74%
of the uninsured are not foreign-born, poverty and the nature of
low-wage employment are more likely reasons for the lack of
health insurance than is the uninsured's immigration status. A
study released by The Commonwealth Fund found that "nine of the
11 million uninsured Hispanics are in working families" and "lack
health insurance because their employers fail to offer them
coverage".[2]
During the briefing, the study's authors were
asked how the number of uninsured persons would be reduced if
"native" workers were simply substituted for foreign-born workers
in the same low-wage jobs that offer no health insurance. The
authors responded with the suggestion that reducing the number of
low-wage foreign-born workers would, by reducing the number of
low-wage workers in general, facilitate the replacement of
low-wage occupations with "capital" and "imports from abroad."
Immigrants' comparatively low incomes make it very difficult for
them to purchase insurance on their own...
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While a reduction in low-wage jobs might mean
that more of the remaining positions had health insurance
benefits, one must consider the ultimate impact this would have
on the American economy. Yes, more of the employed might have
health insurance, but the American economy would have less jobs.
A central premise of the report is that "by
increasing the size of the uninsured population, immigration
makes it much more difficult to help the uninsured already here."
Specifically, the report contends that the added burden of caring
for uninsured foreign-born individuals and their families results
in higher premiums for those who do have health insurance and
drains the healthcare budgets of federal, state, and local
governments that must provide medical care to the uninsured.
However, the report makes no attempt to quantify how much
uninsured immigrants presumably "cost" in either of these
regards.
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Immigrants Pay Their Share of
Costs
The assumption underlying this argument is
that the cost of providing healthcare to uninsured immigrants and
their families, whatever that might be, exceeds any compensatory
economic contributions they make. As a result, the report either
distorts or ignores the growing body of data that quantifies
these contributions by immigrants. For instance, the report
claims that immigrant households participating in the Medicaid
program are having insurance "provided to them at taxpayer
expense," a comment which overlooks the fact that immigrants
themselves are taxpayers.
Immigrant households and businesses generate approximately $162
billion per year in tax revenue to federal, state, and local
governments -- Hardly a drain on the nation's economy!
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The CIS report also overlooks a 1998 study by
the National Immigration Forum and the Cato Institute which found
that immigrant households and businesses generate approximately
$162 billion per year in tax revenue to federal, state, and local
governments. The same study estimates that, given the younger age
profile of immigrants relative to the native-born, "the total net
benefit (taxes paid over benefits received) to the Social
Security system in today's dollars from continuing current levels
of immigration is nearly $500 billion for the 1998-2022
period."[3]
Conclusion
Given the limited focus of the CIS report, its
policy prescriptions consist entirely of restrictionist
immigration measures: eliminating visa preferences for the
spouses and minor children of non-citizens, and for the siblings,
parents, and adult children of both naturalized citizens and
legal permanent residents. During the briefing, former Colorado
Governor Richard Lamm called for cracking down on the "stream of
immi-grants from Central America and elsewhere" who come to the
U.S. for surgery, while Georgia Congressman Charlie Norwood
suggested enactment of a mandatory health insurance law modeled
on mandatory requirements for auto insurance. However, none of
these policies address the root causes of the health insurance
crisis for either immigrants or nonimmigrants, and they avoid any
mention of the enormous economic contributions made by
immigrants.
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Prepared August, 2000
Endnotes
[1] Steven A. Camarota & James R. Edwards, Jr., Without Coverage:
Immigration's Impact on the Size and Growth of the Population
Lacking Health Insurance. Washington, DC: Center for Immigration
Studies, July 2000.
[2] Kevin Quinn, Working without Benefits: The Health Insurance
Crisis Confronting Hispanic Americans. New York: The Commonwealth
Fund, February 2000.
[3] Stephen Moore, A Fiscal Portrait of the Newest Americans.
Washington, DC: National Immigration Forum and Cato Institute,
1998
About The Author
The American Immigration Law Foundation was established in
1987 as a tax-exempt, not-for-profit educational and service
organization. The Foundation's mission is to promote
understanding among the general public of immigration law and
policy, through education, policy analysis, and support to
litigators. AILF is governed by a Board of Directors and a Board
of Trustees.
Working closely with leading immigration experts throughout
the country, AILF has established three core program areas: the
Legal Action Center, the Public Education Program, and an
Exchange Visitor Program. Through these programs, the Foundation
sponsors numerous awards programs, publishes policy reports,
engages in impact litigation, and provides policymakers and the
public with complete and accurate information about the benefits
of immigration.
Copyright © 2001 American Immigration LLC, ILW.COM
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