Many Insured U.S. Residents Having Trouble Paying for Medical Expenses Because of Less-Extensive Coverage, Higher Premiums, Copayments, Deductibles
In addition to increasing the number of uninsured, the "economic slowdown" also is "threatening millions of people who have insurance" but are underinsured or are struggling to afford their premiums, copayments and other out-of-pocket expenses, the New York Times reports. Since 2001, an employee's average annual premium cost for family health coverage has nearly doubled from $1,800 to $3,300, yet at the same time, "incomes have come nowhere close to keeping up," according to the Times. The share of income that the average U.S. household spends on health care has risen by about 12%, and health care expenses now account for nearly one-fifth of the average household's total spending, according to the consulting and accounting firm Deloitte.
As a result, many of the 158 million U.S. residents with employer-sponsored coverage "are struggling to meet medical expenses that are much higher than they used to be." Some people are forced to choose between a routine visit to a physician and basic expenses, according to the Times. In addition, many people's coverage "may not adequately protect them from the financial shock" of an emergency department visit or a major surgery, the Times reports.
According to Helen Darling, president of the National Business Group on Health, companies and lawmakers have yet to address what effect the economic slowdown will have on workers' medical care. Ted Nussbaum, a benefits consultant for Watson Wyatt Worldwide, and other experts say it is unlikely that significant numbers of employers will entirely drop workers' health coverage, though a weak economy could prompt many of them to shift to consumer-driven plans, which generally require workers to contribute a greater share of their medical costs.
Darling said, "It's a bad-news situation when an individual or household has to pay out of pocket three, four or five times as much for their health plan as they would have at the time of the last recession," adding, "Americans have been giving their pay raise to the health care system" (Abelson/Freudenheim, New York Times, 5/4).
