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Waterproof Healthcare:
Building a better, stronger healthcare infrastructure
in New Orleans



By Chris Weaver and Adele Shartzer
March 2007

In recovery from disasters, health care systems and people have at least one thing in common. Some people get a few scrapes and bruises that take only time to heal.  Some can be treated quickly and move on.  Still others have serious chronic conditions that are exacerbated by the disaster, and the morbidity inflicted by interruptions to their care requires intensive medical care.  Hurricane Katrina caused some scrapes and bruises in New Orleans’ health care system: It flooded emergency departments, moldy ICUs, and displaced physicians.  In other ways, however, the structure took deeper hits to older, more severe problems.

The trouble with health care in New Orleans before the storm was that the state concentrated medical care funding for the poor at a few massive institutions. As a result, there was no broad-based, comprehensive coverage for low-income patients. When Charity Hospital, the massive public care facility, was damaged, the poor and insured were left without access to health and medical resources.  Hurricane Katrina’s effects on the city’s few hospitals has shown us that we need a waterproof health care infrastructure, not weather-resistant bricks and mortar, if we are to survive future disasters of its magnitude.

 Prior to the storm, Louisiana had a higher-than-national average rate of people living in poverty (23% vs. 17% nationally), a higher prevalence of non-workers (23% vs. 19% nationally) and higher than average rates of actual chronic diseases such as cancer, diabetes, and heart disease. Statewide, and in New Orleans in particular, the health care system functioned under enormous strain. Because employer-sponsored health coverage was less prevalent than the national average, the public system bore the majority of this strain. Tourism, the mainstay of the pre-Katrina New Orleans economy, typically generates service and retail jobs with high turnover, low pay, and no health coverage.  About one in five Louisiana residents lived without insurance before August 2005.  Public programs such as Medicaid covered about 16% of Louisiana’s residents—nearly 1 million people—before the storm.

Louisiana’s Medicaid program, which provides coverage for certain low-income people, received $2.30 from the federal government in 2006 for every $1 in state and local spending.  States have considerable latitude for administering the program, and while Louisiana had taken steps to increase the number of children with public coverage before Katrina, eligibility for parents remained lower than the national average. The eligibility cutoff for a parent with two children was $3,218 a year in income in 2005.   Adults without dependent children were not eligible at all for public coverage.  Limited eligibility levels left many, like those with chronic mental illness or most adult workers living in poverty, in the gap between Medicaid and private coverage.

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