Monday, 4 June 2007
New Study Highlights the Cost of Being Uninsured
There are roughly 45 million people without health coverage. And those uninsured Americans are more likely to go without preventive care, such as routine doctor’s check-ups and physicals. They are also more likely to end up in the emergency room for serious health conditions.
Uninsured patients are guaranteed emergency care, but they’ll be charged for it — and they’ll be charged top dollar.
A study published in the May-June issue of Health Affairs found that uninsured patients are charged an average of 2.5 times higher than a patient with insurance, and 3 times higher than a patient covered by Medicare.
Patients with insurance, on the other hand, get substantial discounts. An appendectomy may cost $12,500 for an uninsured patient, while the insured might pay $5,000 or less.
“Hospitals shouldn’t be charging 3 times Medicare rates, especially from poor people who are uninsured,” said Gerard F. Anderson, who led the study at John Hopkins University.
But hospitals criticize Anderson’s study. They contend the 2004 data used for the study is outdated.
“Since 2004, hospitals have provided billions of dollars in free and discounted care for the uninsured and have changed their billing practices to lighten the burden on the uninsured,” said Jan Emerson, spokeswoman for the California Hospital Association.
To offset the some of the costs absorbed through uninsured care, hospitals are forced to raise rates for their care — and that contributes to the rising healthcare costs.
What can we do to help fix an ailing healthcare system?
“The solution is for people to be covered under health insurance,” said Anthony Wright, executive director for the consumer advocacy group Health Access California. “At the end of the day, if you can’t afford insurance, you can’t afford the discounted rates either.”
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