Health / Medical Debt
High health care costs are a problem for everyone, but can be especially detrimental and financially disabling for low and moderate income individuals. Among those in the highest economic quintile, over 90% have health insurance, whereas only 73% of those in the lowest economic quintile have health insurance. Moreover, of this 73% only 21% of low income individuals have private health insurance while half have public insurance.
Lack of affordable, private health insurance stresses the already underfunded Medicare and Medicaid programs. Current estimates are that the Medicare Trust Fund will be depleted by 2017, much earlier than previously thought, and that it is paying out more than it is taking in from payroll and interest income. Unless reforms are made soon, millions more will join the ranks of the 42 million Americans currently without health insurance.
Without health insurance, medical emergencies frequently place individuals and families at risk of losing assets and falling prey to predatory lenders. Estimates suggest that nearly 37% of adults have difficulty paying medical bills or have accrued medical debt. In fact, medical debt is one of the major factors that cause personal bankruptcy.
Increasing access to and funding for public health care programs like Medicaid will ensure that low-income workers’ medical debt will not inhibit their attainment of assets. Thus, health care coverage issues can be another important component of an asset building policy agenda.
Lack of affordable, private health insurance stresses the already underfunded Medicare and Medicaid programs. Current estimates are that the Medicare Trust Fund will be depleted by 2017, much earlier than previously thought, and that it is paying out more than it is taking in from payroll and interest income. Unless reforms are made soon, millions more will join the ranks of the 42 million Americans currently without health insurance.
Without health insurance, medical emergencies frequently place individuals and families at risk of losing assets and falling prey to predatory lenders. Estimates suggest that nearly 37% of adults have difficulty paying medical bills or have accrued medical debt. In fact, medical debt is one of the major factors that cause personal bankruptcy.
Increasing access to and funding for public health care programs like Medicaid will ensure that low-income workers’ medical debt will not inhibit their attainment of assets. Thus, health care coverage issues can be another important component of an asset building policy agenda.
Resources:
State Policy Ratings: Expanded Coverage for Medicaid and SCHIP
Description: This page has CFED's state policy ratings of expanded coverage for Medicaid and SCHIP.
Statehealthfacts.org
Description: Statehealthfacts.org is a project of the Henry J. Kaiser Family Foundation and is designed to provide free, up-to-date, and easy-to-use health data on all 50 states. The website has comprehensive state data on several health topics, including health coverage, Medicaid, and the State Children's Health Insurance Program.
The Access Project's Medical Debt program
Description: The Access Project is a resource center for local communities working to improve health and healthcare access. The Access Project has conducted extensive research on medical debt and its effects, including the link between medical debt and housing and credit. Visit their website to find a list of their publications and information about their Medical Debt Resolution Training program.
