NEW JEC REPORT REVEALS WOMEN EXPERIENCING DOUBLE-WHAMMY OF LOSING HEALTH INSURANCE COVERAGE DUE TO THEIR OWN OR SPOUSE’S JOB LOSS 

New Report Examines What’s at Stake for Women in Health Care Reform and Why They Would Benefit from Public Option, Health Insurance Exchanges 

Washington D.C. – Today, Congresswoman Carolyn B. Maloney, Chair of the Joint Economic Committee (JEC), along with Rep. Elijah Cummings and Rep. Jim Moran released a JEC new report entitled, “Comprehensive Health Insurance Reform: An Essential Prescription for Women.”  The report reveals that during the recession, women are experiencing a double-whammy of lost health insurance as they lose their insurance due to either their own or their spouse’s job loss. In addition, the JEC report chronicles the vulnerability created by women’s dependence on their spouse’s employer-sponsored health insurance, the unique risk of un-insurance for younger and older women, and the spike in newly uninsured children of unemployed single mothers.  To access the new JEC report, click here.  

JEC Chair Maloney said, “Today’s report underscores the unique risks women face in losing their health insurance coverage, and their unique difficulties obtaining affordable, quality health insurance policies.  The system is clearly broken – over one million women have lost their health insurance because their spouse lost their job.  The comprehensive health care reform proposals offered by the Obama Administration and currently taking shape in Congress include numerous provisions that are critical to providing quality, affordable health care for all Americans, both women and men. Many of these solutions are a key part of the prescription for easing the burden on America’s women, for whom the status quo health care system is a failure.”

JEC Vice Chair Schumer said, “This report should be a wake-up call to all legislators that we simply cannot afford to ignore the needs of a 64 million plus population. Women and men have different health needs, which in turn makes them some of the most active participants in our health care system.  This fact illuminates the harsh reality that women are growingly susceptible, both economically and physically, to the effects of our broken system. I join with Chairwoman Maloney in continuing to work with our colleagues in Congress on proposals that benefit all Americans, giving mothers, sisters, daughters and grandmothers the care they need and deserve."

Rep. Cummings said, “We cannot continue with a health care system that discriminates against our mothers, daughters, sisters, and friends. We must act now to pass the comprehensive health care reform under consideration by the Congress to ensure that all Americans—including women—have access to quality, affordable health care that covers their individual needs.”

Rep. Moran said, “Our current health system—the most expensive in the world—needs urgent surgery to insure women, especially those most grievously affected by the recession, receive equal care. For far too many women and their families, quality, affordable health care is out of reach. More than two out of every five low income women today lack health care insurance. With urgent warnings about a renewal of swine flu this fall and steep declines threatening even deeper cuts in state Medicaid funding, it is critical for us to act.  Our goal—as Americans—should be to provide quality, affordable health care for all Americans.”

 Key Findings From The JEC Report Include: 

• Over one million women have lost their health insurance due to a spouse’s job loss during the current economic downturn. Women have lost 1.6 million jobs since the recession began in December 2007, and many of those women saw their health insurance benefits disappear along with their paychecks. Second, women whose spouses lose their jobs are also vulnerable to losing their health benefits, because so many women receive coverage through a spouse’s job-based plan. The Joint Economic Committee estimates that over 1.4 million women have lost health insurance benefits because of the contraction in the labor market since December 2007. 71 percent (1,001,913) lost their insurance due to a spouse’s job loss. 29 percent (414,964) of those women lost their insurance due to their own job loss.
• As a consequence of single mothers’ job loss, the Joint Economic Committee estimates that at least 121,000 children have lost health insurance coverage. The weak job market has been rough on single mothers; the number of unemployed female heads of household has increased 53 percent over the past twelve months. For many of these women, the loss of a job means not only a disappearing paycheck, but also the disappearance of employer-sponsored health insurance coverage for their families.
• Women between the ages of 55 and 64 are particularly vulnerable to losing their health insurance benefits because of their husbands’ transition from employer-sponsored coverage to Medicare. One recent study concludes that a husband’s transition from employer-sponsored coverage to Medicare at age 65 can be problematic for his younger wife. Many of these wives depended on their spouse’s employer-based coverage and are not yet age-eligible for Medicare. As a result, 75 percent of these women reported delaying filling prescriptions or taking fewer medications than prescribed because of cost.
• Younger women are particularly vulnerable to lacking adequate health insurance coverage. Over one-quarter (28 percent) of all young women (ages 19-24) do not have health insurance coverage. The weak job market has hit young workers particularly hard, with the unemployment rate amongst young women at 15.7 percent in June 2009, the highest in a quarter century and substantially higher than the national unemployment rate of 9.5 percent. The dismal job market means that young women are less likely than ever to have access to job-based coverage, and many women who once received coverage through a parent’s health insurance plan have seen this coverage evaporate with their parents’ jobs.
• 41 percent of all low-income women lack health insurance coverage. Because of wide variability in state Medicaid eligibility rules, millions of American women fall through the safety net every day. The devastating impact of the recession on state budgets has forced some states to further tighten Medicaid eligibility rules at precisely the time when need is growing fastest.
• The health consequences of inadequate coverage are more severe for women than for men. Women are more likely than men to run into problems receiving adequate medical care. Over a quarter (27 percent) of women had health problems requiring medical attention but were not able to see a doctor, compared to 21 percent of men. Similarly, nearly a quarter (22 percent) of women reported that they were unable to fill a needed prescription, as compared to 15 percent of men.
• While the financial burden of inadequate health insurance coverage weighs heavily on all Americans, uninsured and under-insured women suffer more severe economic consequences than do men. Women are more likely than men to deplete their savings accounts in order to pay medical bills. One-third of under-insured women deplete their savings to pay medical bills, as compared to a quarter of under-insured men. The disparity is comparable amongst the uninsured (34 percent of uninsured women as compared to 29 percent of uninsured men).

The comprehensive health care reform proposals offered by the Obama Administration and currently taking shape under the leadership of Democrats in the House and Senate includes numerous provisions that are critical to providing quality, affordable health care for all Americans, both women and men. Many of these solutions are a key part of the prescription for easing the burden on America’s women, for whom the status quo health care system is a failure.

 To access the new JEC report, click here.  

The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy. 

www.jec.senate.gov

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For Immediate Release                                                Contact: Aaron Rottenstein, JEC, (202) 228-6512
July 29, 2009

FOLLOWING TREASURY AND HUD MEETING WITH LOAN SERVICERS
REP. MALONEY URGES ADDITIONAL TRANSPARENCY, FASTER ACTION

Washington D.C. –Today, Congresswoman Carolyn B. Maloney, Chair of the Joint Economic Committee (JEC) sent a letter to Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan urging faster action and greater transparency from loan modification companies as they work within recently enacted programs to help borrowers stay in their homes.  Chair Maloney urges the Administration to implement reporting requirements to ensure that loan servicers do not manipulate the modification process for their own gain.  For example, servicers should be required to report information about the success of the loan modification process as well as their own overall performance.  The letter, sent today, comes on the heels of a JEC hearing at which the Government Accountability Office discussed the findings of a new report, requested by Chair Maloney, detailing the epidemic of nonprime foreclosures in localities nationwide. Testimony of expert witnesses on the ways in which government can help cut rising foreclosure rates, opening statements, and a recorded webcast can be found here.  And the new GAO report can be accessed here.  

A copy of the letter appears below:

July 29, 2009
 
The Honorable Timothy F. Geithner             
Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220
 
The Honorable Shaun Donovan
Department of Housing and Urban Development
451 7th Street, SW
Washington, D.C. 20410
 
Dear Secretary Geithner and Secretary Donovan:

Yesterday the Joint Economic Committee held a hearing entitled “Current Trends in Foreclosures and What More Can be Done to Prevent Them.”  The Committee heard testimony that should be of interest to you in your efforts to stem the tide of foreclosures across the country.  The report and witness testimony are available at www.jec.senate.gov.

A study I requested from the Government Accountability Office, entitled "Characteristics and Performance of Nonprime Mortgages" found that almost one-quarter of active non-prime loans were seriously delinquent (in the foreclosure process or more than 90 days delinquent) as of March 31, 2009.  The GAO study also includes an appendix which reports the serious delinquency rates by state and Congressional district.

This previously undisclosed loan-level data that GAO obtained and analyzed at my request provides a sobering snapshot of the foreclosure crisis inherited by the Obama administration. Key measures for addressing this problem include incentives to servicers to modify loans in the administration’s Home Affordable Modification Program and an expansion of eligibility to receive low cost FHA loans in Hope for Homeowners. 

I applaud the efforts by Treasury and HUD officials who met with mortgage servicers yesterday to encourage them to speed the pace of modifications, which are not happening quickly enough. The pledge by mortgage company executives to reach 500,000 loan modifications by November 1 is a step in the right direction.  But our hearing brought to light that questions remain about how prepared servicers are to take up the challenge to act more swiftly and more transparently.

First, the servicers who are modifying loans are the parties who originated the bad loans in the first place, so we must receive assurances that the servicers will not repeat the mistakes of the past.

Second, this crisis was precipitated by and continues in an unabated fashion because of the asymmetries in information in this market, so Treasury must insist that actions taken by servicers are more transparent to both investors and regulators.  As Dr. Joseph Mason testified yesterday, current industry reporting does not capture even the most basic manipulations by servicers.  Servicers have incentives to implement unsustainable repayment plans to depress or defer the recognition of losses in the loan pool. For this reason, servicers should be required to report information about the success of the loan modification process as well as their own overall performance. I would welcome additional details from the Administration regarding implementation of reporting requirements on servicers in order to add transparency to this market.

Finally, in response to my question about whether loan modifications face an uphill battle if foreclosures are in the best interest of the servicers, Dr. Susan Wachter testified that while it is in each servicer’s interest to foreclose quickly on delinquent properties, the collective foreclosures are driving prices down and leading to even more foreclosures. I hope you will be successful in impressing this point upon the servicers. Dr. Wachter also added that while unemployment is a factor in delinquencies, the downward spiral of home prices is contributing significantly to foreclosures.

I applaud your efforts regarding loan modifications and urge you to continue your work to encourage servicers to modify loans rather than foreclose on individuals who could stay in their homes if their payments were reduced.

I look forward to your response.
 
                                                                       
Sincerely,
 
 
                                                                   
Carolyn B. Maloney
Chair, Joint Economic Committee

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The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.
 www.jec.senate.gov

JEC CHAIR MALONEY STATEMENT ON NAMING OF FINANCIAL CRISIS INQUIRY COMMISSION 

Washington D.C. – Congresswoman Carolyn B. Maloney, Chair of the Joint Economic Committee (JEC) released the following statement on the naming of Brooksley Born, John W. Thompson, Heather Murren, Senator Bob Graham, Byron Georgiou, and Chairman Phil Angelides to the Financial Crisis Inquiry Commission:

“Transparency and frank public discussion are the best ways to uncover the root of the problems which led our financial system into crisis.  With these appointments, the Financial Crisis Inquiry Commission gains the talent and experience necessary to conduct a thoughtful, non partisan examination of the financial sector and its government counterparts.  I look forward to working alongside this commission to ensure that the mistakes made over the past several years are not allowed to bring our economy to the brink once again.”

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The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.
 www.jec.senate.gov

JEC CHAIR MALONEY STATEMENT ON REGULATORY REFORM PROPOSAL

Washington D.C. – Congresswoman Carolyn B. Maloney, Chair of the Joint Economic Committee (JEC) released the following statement regarding the Obama Administration’s announcement of a plan to overhaul the regulation of financial institutions and systemically important companies:

“Today’s actions by the Obama Administration signal that the President is determined to act swiftly, sensibly, and in the interest of the individual consumer to strengthen our financial regulatory system.  Bringing regulation in line with 21st century realities is critical to preventing future crises and protecting Americans nationwide from the unchecked risk-taking that has shown to have system-wide implications for our economy.

 “The proposed financial product safety agency will further champion protections established in the recently signed credit card reform bill.  An agency focused on shielding investors from risky and deceptive products will roll back a decade of regulatory failure and establish consumer protection as central to financial regulation.  This is a critical step and will ensure families better understand the investments they make. 
 
“As Chair of the Joint Economic Committee and a member of the Financial Services Committee, I have heard expert testimony from both the government and private sector imploring Congress to adopt more prudent financial regulation.  In the coming months, Congress will continue to work with the President to ensure that we bring greater stability and transparency to our financial system.” 

The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.
 www.jec.senate.gov