The Commonwealth Fund released a report yesterday on healthcare affordability, which is based on a survey it conducted of more than 6,000 consumers nationwide. Many Americans are struggling to afford healthcare and one-third of the survey’s respondents said they were overwhelmed with medical debt. Here are some of the survey’s key findings.
- Prevalence of Medical Debt Across Insurance Types: Regardless of insurance, many Americans face medical debt. Among insured working-age adults:
- 30% with employer coverage
- 33% with marketplace or individual-market plans
- 21% with Medicaid
- 33% with Medicare
- Insurance Doesn’t Guarantee Affordability: Despite having insurance, a large proportion of Americans struggle with healthcare costs:
- 43% with employer plans
- 57% with marketplace or individual-market plans
- 45% with Medicaid
- 51% with Medicare
- Healthcare Costs Impacting Treatment: Many insured individuals delay or skip necessary healthcare due to costs:
- 29% with employer coverage
- 37% with marketplace or individual-market plans
- 39% with Medicaid
- 42% with Medicare
- Medical Debt and Household Impact: The burden of medical debt extends beyond healthcare, affecting household finances and well-being:
- Over one-third with medical debt delayed or avoided healthcare or prescriptions.
- Two of five with medical debt struggled to pay for basic necessities like food and housing.
- High Debt Loads: A significant portion of working-age adults carry substantial medical debt:
- 85% reported debt loads of $500 or more.
- Nearly half are paying off $2,000 or more.
- Inflation and Healthcare Affordability: Economic inflation significantly impacts the ability to afford healthcare, even among those with insurance.
- Potential for Insurance Cancellation: Economic pressures have led some to consider or actually drop health insurance due to costs, particularly among low-income individuals.
Implications for Debt Collection Professionals: The survey highlights widespread healthcare affordability issues, leading to substantial medical debt across various insurance types. As medical costs continue to burden households, debt collection professionals in the healthcare and medical sector should anticipate an increasing demand for their services. Understanding the financial challenges faced by debtors, especially in the context of healthcare, can inform more empathetic and effective collection strategies.