Losing Ground: How the Loss of Adequate Health Insurance Is Burdening Working Families

[RedEarth]

Overview
The economic downturn is forcing working families across the United States to make tough financial choices, often involving sacrificing needed health care and health insurance. Using data from four years of the Commonwealth Fund Biennial Health Insurance Survey, this report examines the status of health insurance for U.S. adults under age 65 and the implications for family finances and access to health care. Insurance coverage deteriorated over the past six years, with declines in coverage most severe for moderate-income families. As result, more families are experiencing medical bill problems or cost-related delays in getting needed care. In 2007, nearly two-thirds of U.S. adults, or an estimated 116 million people, struggled to pay medical bills, went without needed care because of cost, were uninsured for a time, or were underinsured (i.e., were insured but not adequately protected from high medical expenses).


Executive Summary
A perfect storm of negative economic trends is battering working families across the United States. The federal minimum wage is now three dollars an hour lower, in real terms, than it was 40 years ago; gas and food prices are soaring; home values are declining; growth in health care costs is far outstripping income growth; and people are increasingly going without the protection of health coverage—nearly 9 million have lost their health insurance since 2000. Families are facing financial crises and are forced to make hard choices among life's necessities, often sacrificing health care and health insurance along the way.

Using data from four years of the Commonwealth Fund Biennial Health Insurance Survey—2001, 2003, 2005, and 2007—this report examines the status of health insurance for U.S. adults under age 65 and the implications for family finances and access to health care. Insurance coverage deteriorated over the past six years, with declines in coverage most severe for moderate-income families. The share of insured adults who spend more than 5 percent or 10 percent of income on health care and insurance rose across all income groups between 2001 and 2007. As a result, the number of underinsured adults (i.e., those with health coverage that does not adequately protect them from high medical expenses) climbed to 25 million people in 2007, up from 16 million in 2003.

More adults are struggling to pay their medical bills and are accumulating medical debt over time. Forty-one percent of working-age adults, or 72 million people, reported a problem paying their medical bills or had accrued medical debt, up from 34 percent, or 58 million, in 2005. An additional 7 million adults 65 and older also reported bill or debt problems. (See the companion issue brief, Seeing Red: The Growing Burden of Medical Bills and Debt Faced by U.S. Families.) This increase occurred across all income groups but families with low and moderate incomes were particularly hard hit: more than half of adults with incomes under $40,000 reported problems with their medical bills in 2007. Underinsured adults or those with gaps in their health insurance reported the highest rates.

Declining insurance coverage and rising health care costs are likely contributing to skimping on needed care. The share of U.S. adults reporting that the costs of health care prevented them from getting needed care increased from 29 percent in 2001 to 45 percent in 2007. Reports of cost-related access problems rose across all income groups and among both insured and uninsured adults.

All told, in 2007 nearly two-thirds of adults, or 116 million people, were either uninsured for a time during the year, were underinsured, reported a problem paying medical bills, and/or said they did not get needed health care because of cost.

Key findings of the survey include:

more......

http://www.commonwealthfund.org/publications/publications_show.htm?doc_id=700872

[lifesbeautifulmagic]

1. I posted this earlier today, but due to factors outside of my family's

control, we are now responsible for paying all of our medical insurance premium starting Oct 1st. The premium will be approx $700 a month. I have no idea where we are going to find that much every month, no idea at all. The amount will be our heating bill, plus our phone bill, plus our auto insurance. EVERY MONTH. I guess I can try to get a second job, evenings or weekends. On top of the 40+ hours I already work.

I can't believe this is America, and the absolute lack of concern from our current leadership (repubs).

[LeftishBrit]

2. Very worrying; and in many cases tragic

[Warpy]

3. Deductibles, copays and having policy cost increases passed on

are killing a lot of people who still have insurance. They're paying more and more out of pocket for routine care. Having a kid fall out of the apple tree and break something can put them deeply into a hole with copays for the ER, ER doc, orthopedist, lab, Xray, radiologist, pharmacy, and other people with their hands out even if the kid doesn't need surgery to reduce the fracture and/or they don't have a high deductible.

Our system is badly broken to the point that people who are paying for insurance are terrified they'll have to use it and get into debt to some loan shark storefront just to get a simple problem treated.

Anyone who suggests leaving bloodsucker insurance companies in place is either ignorant or insane. There are no other options.