Uninsured Americans cost the American healthcare system an additional $49 billion annually, according to a new, recently released government study. That figure includes those with incomes well above the poverty line, who leave hospitals with unpaid tabs that are the cost-shifted to the private side of the health insurance market.
HHS Study Details
The study reports that on average, uninsured families pay only about 12% of their hospital bills in full. According to the study, families with incomes above 400% of the federal poverty level (FPL), or about $88,000 a year for a family of four, pay about 37% of their hospital bills in full. That number should be a shock for most readers. First of all, how many would think that there are numerous Americans who have that kind of income, and yet do not have employer-based health insurance? Second, how many would assume they were only able to cover 37% of the charges on average.
Consider that those with incomes up to 400% of FPL will receive premium credits that will be tied to the second lowest cost silver plan offered through Health Insurance Exchanges implemented under the Affordable Care Act passed in 2010.
The Health and Human Services report “shows that even higher-income, uninsured families are struggling to meet the high costs of health care," Sherry Glied of Health and Human Services said in a statement.
Researchers also found that most uninsured people have "virtually no" savings and that about a third have no financial assets. Perhaps this gives a new glimpse at the uninsured and why they cannot pay catastrophic health insurance bills.
Alternative Viewpoint
In a USA Today article reporting on the DHHS report, Paul Winfree, a senior policy analyst at the conservative Heritage Foundation, disagrees with the study results. Winfree says, 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."
Analysis and Call for Opinions
So which argument do you agree with? Do you agree with Paul Winfree that those individuals making up to $88,000 / year for a family of four should pay their hospital bills? Of course they should. But is that the right argument?
Or is the argument from a single payer advocate’s perspective the right one? They would argue that the U.S. health care system should be set up to avoid this dilemma and the resulting cost-shifting that takes place to those who do have coverage.
Obviously, both arguments have merit. But what is the direction we should move in? Is the Affordable Care Act the correct direction with its individual health insurance purchase mandate? Or should the health insurance system be based on a more free market oriented model with perhaps a voucher system?
Do you have a strong opinion either way, if so, go to my forum site for a discussion.
