Growing Health Insurance Concern: The Underinsured Epidemic
By: Lindsay Wissman (Zane Benefits) January 2017
With the rising cost of health insurance comes another concern that has historically received far less attention. The most recent Biennial Health Insurance Survey conducted by the Commonwealth Fund indicates that the number of Americans who are underinsured is increasing. Not only is this causing people to endure a higher burden of medical expenses, but it means that people are opting out of medical care in order to save money—which could have dangerous (and costly) consequences.
What Does Underinsured Mean?
The Commonwealth Fund uses an analysis of “out-of-pocket costs over the course of a year, not including premiums, and the health plan deductible” to determine if a person is underinsured. Their exact formula goes as follows:
– “out-of-pocket costs, excluding premiums, over the prior 12 months are equal to 10 percent or more of household income; or
– out-of-pocket costs, excluding premiums, are equal to 5 percent or more of household income if income is under 200 percent of the federal poverty level ($22,980 for an individual and $47,100 for a family of four); or
– deductible is 5 percent or more of household income”
The Original Survey by the Commonwealth Fund
Every two years, the Commonwealth Fund conducts a health insurance survey to examine the state of health costs in America, allowing them to observe industry trends over time.
One of the more alarming trends appearing in the three most recent surveys (2010, 2012, and 2014) is the rising number of Americans, ages 19 to 64, who are classified as “underinsured.” This was a whopping 23 percent in 2014, up from 13 percent in 2005—20 percent of whom were enrolled in employer-provided health insurance.
The survey implies that being underinsured has adverse effects on people’s health and well-being. Fifty-one percent of the underinsured reported difficulty paying medical bills, undoubtedly causing stress and threatening mental health. Not to mention the physical toll that being underinsured is taking on the 44 percent who are not seeking medical attention for ailments in order to avoid the cost.
This study was conducted during 2014 and used data from the previous 12 months, which means that no one participating in the survey held Marketplace coverage during that time frame. It is important to note that because of the timetable, the effects of Affordable Care Act (ACA) can not yet be determined. The next biennial report should include that data.
Conclusion
The number of Americans classified as underinsured has increased 10 percent in the past 9 years. Higher deductibles and out-of-pocket costs are causing many people to be bogged down in medical debt and even to refuse medical treatment. The next Commonwealth Fund Biennial Health Insurance Survey is due mid-2017.
Categories
- Benefits Resources
- Bonding
- BOP
- Business Insurance
- Commercial Auto
- Commercial Property
- Company News
- Construction
- Crime Insurance
- Cyber Insurance
- Directors & Officers
- Employee Benefits
- Employment Practice Liability Insurance
- Entertainment
- General Liability
- Health Insurance
- Healthcare
- Healthcare Reform
- Homeowners Insurance
- Hospitality
- Manufacturing
- Medical Malpractice
- Mining & Energy
- Nightclubs
- Personal Auto
- Personal Insurance
- Professional
- Restaurants
- Retail & Wholesale
- Risk Management Resources
- Safety Topics
- SBA Bonds
- Security
- Seminars
- Technology
- Tourism
- Transportation
- Uncategorized
- Workers Compensation
Archives
- May 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- November 2018
- September 2018
- August 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- February 2013
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- March 2011
- November 2010
- October 2010
- September 2010
- April 2010
- February 2010
- November 2009
- October 2009
- November 2008
- August 2008