The Hidden Epidemic
How Medical Debt is Crippling Americans
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Medical debt is a significant financial burden for millions of Americans. According to a survey by the Kaiser Family Foundation, 1 in 4 non-elderly adults in the United States struggle to pay their medical bills, and medical debt is the leading cause of bankruptcy in the country (Kirzinger et al., 2020). The cost of healthcare in the United States is notoriously high, and even those with insurance coverage may find themselves struggling to pay their medical bills. This article will explore the issue of medical debt in the United States and its impact on individuals and the healthcare system.
The high cost of healthcare in the United States is a well-documented problem. According to the Organization for Economic Cooperation and Development (OECD), the United States spends more on healthcare per capita than any other country in the world (OECD, 2021). Despite this high level of spending, many Americans still struggle to afford medical care. A study by the Commonwealth Fund found that 41% of adults in the United States reported skipping medical care due to cost (Collins et al., 2019).
For those who do seek medical care, the cost of treatment can be astronomical. According to a survey by the National Opinion Research Center (NORC) at the University of Chicago, 57% of Americans with medical debt owe $5,000 or more, and 15% owe $10,000 or more (NORC at the University of Chicago, 2020). The consequences of medical debt can be severe. Patients may delay or forego necessary medical care due to cost concerns, which can lead to worsened health outcomes and increased healthcare costs in the long run. For those who are unable to pay their medical bills, debt collectors may pursue legal action, which can result in wage garnishment and damage to credit scores. In extreme cases, medical debt can lead to bankruptcy, which can have long-term financial and personal consequences.
The issue of medical debt is not limited to individuals. Healthcare providers and the healthcare system as a whole are also affected by unpaid medical bills. According to a report by the American Hospital Association, US hospitals provided $40.5 billion in uncompensated care in 2019 (American Hospital Association, 2020). This represents a significant financial burden for hospitals and can affect their ability to provide high-quality care to patients.
One major step towards solving the issue of medical debt in the US is the Affordable Care Act (ACA). The ACA was signed into law in 2010 with the goal of expanding access to healthcare and reducing the cost of healthcare for Americans. One of the key ways that the ACA addressed the issue of medical debt was by expanding insurance coverage. Under the ACA, insurance companies are required to cover pre-existing conditions and cannot deny coverage to individuals based on their medical history (Kaiser Family Foundation, 2021). This has helped to ensure that more Americans have access to healthcare coverage and are not burdened with high medical bills.
Another way that the ACA addressed medical debt was by setting limits on out-of-pocket expenses for individuals with insurance coverage. The law established annual limits on the amount that individuals could be required to pay in deductibles, copayments, and coinsurance for covered services (Kaiser Family Foundation, 2021). This has helped to prevent individuals from being overwhelmed by medical bills and has made healthcare more affordable for many Americans.
The ACA also established the Health Insurance Marketplace, which provides a centralized platform for individuals to compare and purchase insurance plans. The Marketplace offers subsidies to individuals with low or moderate incomes, making insurance more affordable for those who may not have been able to afford it otherwise (Kaiser Family Foundation, 2021). This has helped to increase the number of Americans with insurance coverage and has reduced the number of individuals facing medical debt. While the ACA has helped to address the issue of medical debt, challenges remain. Not all states have expanded Medicaid under the ACA, which means that some low-income individuals may still lack access to affordable healthcare coverage. However, the ACA represents a significant step forward in addressing the issue of medical debt in the United States.
In conclusion, medical debt is a pervasive issue in the United States that affects millions of Americans and has significant implications for the healthcare system as a whole. Efforts to address this problem may include policies to lower the cost of healthcare, increase insurance coverage, and provide financial assistance to those in need. Until these or more drastic changes are implemented, medical debt will continue to be a significant financial burden for many Americans.
References:
American Hospital Association. (2020). Fact Sheet: Uncompensated Hospital Care Cost Fact Sheet. Retrieved from https://www.aha.org/system/files/2020-06/20UncompensatedCareCostsFactsheet.pdf
Collins, S. R., Gunja, M. Z., Doty, M. M., & Beutel, S. (2019). Americans’ Challenges with Health Care Costs. Commonwealth Fund.
Kirzinger, A., Kearney, A., Hamel, L., Brodie, M. (2020). KFF Health Tracking Poll – January 2020: The Public’s Priorities and Views on Healthcare Policy. Kaiser Family Foundation.
National Opinion Research Center at the University of Chicago. (2020). The Challenge of Medical Debt: Results from the NORC AmeriSpeak® Omnibus Survey. Retrieved from https://www.norc.org/PDFs/The%20Challenge
Kaiser Family Foundation. (2021). The Affordable Care Act’s Key Elements. Retrieved from https://www.kff.org/health-reform/fact-sheet/the-affordable-care-acts-key-elements/
