On average, uninsured families pay only about 12% of their hospital bills in full. Families with incomes above 400% of the poverty level, or about $88,000 a year for a family of four, pay about 37% of their hospital bills in full, according to the Department of Health and Human Services study.
“This report shows that even higher-income, uninsured families are struggling to meet the high costs of health care,” Sherry Glied, assistant secretary for planning and evaluation at Health and Human Services, said in a statement. “No family should bear the burden of being one illness or accident away from bankruptcy.”
Researchers also found that most uninsured people have “virtually no” savings and that about a third have no financial assets.
Health and Human Services released the report as the White House defends the federal health care law passed last year, which was intended to address growing health care costs as well as ensure all Americans can afford health insurance. Republicans have pledged to repeal the federal health care law, saying that government should not take away individual choices and that the law will cost too much. Glied said the study shows the importance of health insurance for all Americans.
Paul Winfree, a senior policy analyst at the conservative Heritage Foundation think tank, disagreed, saying the study showed how Americans can exploit the system. “With ($88,000), families should be able to buy insurance,” he said. “They choose not to.”
He said that while he realizes hospitalizations tend to be expensive, Americans need to look at their spending and saving habits.
Jack Hadley, senior health services researcher at George Mason University in Fairfax, Va., pointed out that uninsured people are charged as much as two-thirds more than what insured people are charged because insurers are able to negotiate prices.
His research has found that privately insured individuals don’t end up paying higher premiums to make up for the uninsured because hospitals that serve lower-income families don’t have a lot of patients with insurance. He said the government pays about 75% of those unpaid hospital bills either by direct payment or through a disproportionate payment of Medicaid.
“It affects taxes, not premiums,” he said. “The privately insured are still paying for it.”
Jim Tallon, president of the non-profit United Hospital Fund, said the federal health care law’s mandate that most Americans be insured is a step in the right direction. Hospital officials are “nervous” about proposed medical cuts in the House budget, he said.
“Most of the major hospital associations were supportive of the Affordable Care Act for this reason,” he said. “They were willing to take some cost reductions in Medicare payments, and in return, the government would insure 32 million people.”
(Source: USA Today)
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3 Responses
What percentage of people with insurance pay their hospital bills in full? In most cases, the hospital heavily discounts the bill as part of a deal with the insurance companies. Paying full rate for a hospital is similar to buying a product at “list” rather than at “street” price (just ask Adorama or B&H for the details of how that works).
How many people with insurance have savings and financial asasets? The story should also ask how many uninsured people are eligible for medicaid, or would immediately become eligible if they became unemployed as a result of a serious illness. The interesting question is how many uninsured are truely uninsured and unable to afford insurance (as opposed to choosing to be uninsured since insurance is too expensive and if they have a serious problem they can become medicaid eligible). Some of the initial programs under the Health Care Reform suggest that many of the Democrat’s assumptions do not match the real world.
The article is based on some political propaganda that is clearly manipulating statistics for partisan purposes.
Hospitals nickel and dime people with private insurance.
“the hospital heavily discounts the bill as part of a deal with the insurance companies.”
Which is why a hospital might bill an insurance company $7495 for “one day semi private room”, because it is negotiated rate and they will pocket most of that number. Of course, those who have deductibles and co-pays to pay, it comes off the money the insurer pays. when hospital then bills the patient for the balance, they suddenly have a much higher daily charge say, $8695. they deduct what was paid by insurance and go after you for the balance.
This actually happened to me, and I filed a complaint with the NYS Insurance Board, after trying to work it out with the hospital. Had they billed the larger amount to my insurance provider, they would have “not allowed” the amount over $7495 as per contract. I told them this info, they ignored it, sent a collection agency after me, I filed a complaint with the insurance board against the hospital and collection agency, and now both are facing a fine for fraud. Dont let hospitals nickel and dime you.
“With ($88,000), families should be able to buy insurance,” he said. “They choose not to.”
This is partially true. If you have a pre-existing condition, you don’t have a choice. Fortunately the Affordable Care Act will change that as of 2014.