Pre-existing health conditions limit job flexibility.

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Nearly 47,000 Montanans identify themselves as having pre-existing health conditions that limit their ability to either buy insurance or switch health insurance carriers, and some say this restricts their job flexibility, according to a recent Bureau of Business and Economic Research survey.

Because of pre-existing conditions such as diabetes, high blood pressure, cancer, heart conditions--and even pregnancy--a significant number of Montanans feel that they need to stay in their current jobs because of their health insurance situation, the survey found.

Bureau researchers conducted the survey using a random sample of nearly 6,300 respondents, including both landline and cell phone-only households. The survey assessed labor market status, availability, training, and other information such as health care issues that are relevant to current and future employers.

Taking a new job has risks for those with pre-existing health conditions, though the risks are not as severe for employees with employer-based plans as for those with individual plans. New employers may not offer the same benefits, but the worst-case scenario is that employees may be excluded for up to a year from coverage for pre-existing conditions. Under individual polices, insurers may turn a person down if pre-existing conditions are evident. The insurer may even impose an elimination rider whereby pre-existing conditions are permanently excluded from coverage.

The lack of health insurance poses significant economic hardship for many Montanans. For employees, the prevalence of pre-existing health conditions may limit their ability to pursue new employment; for employers, it may limit their ability to recruit new hires. On either count, this situation limits mobility of a crucial resource--labor.

Of these 47,000 Montanans, pre-existing health conditions that make it difficult to change or obtain health insurance are more pronounced for Native Americans and women. Nearly 8 percent of the Native American population and 7 percent of the adult female population report pre-existing health conditions.

One of many issues behind national health care reform is the number of Americans with pre-existing health conditions. Until now, the number of Montanans who fall into this category has been subject only to speculation. Bureau survey data now add quantitative insights. If a government-sponsored health plan emerges, it may be an alternative for many Montanans facing these issues.

Gregg Davis is the director of health care industry research at The University of Montana Bureau of Business and Economic Research.

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