A study recently published by the Center for Studying Health System Change notes that between 2007 and 2010, roughly the same percentage of American families reported having trouble paying medical bills—20.9 percent, or more than one in five.
While that number has held steady for the past several years, it marks a significant jump from 2003, during which only 15.1 percent of Americans mentioned difficulties paying medical bills. The study looked at 17,000 Americans to determine how medical costs are affecting people’s ability to pay bills and remain above water financially.
In addition to discovering consistent medical bill distress since 2007, the report found that:
- Of those who reported problems paying medical bills in 2010, two-thirds also noted that they had trouble making ends meet in other areas of their lives.
- As many as 25 percent of people with problematic medical debt in 2010 reported considering a personal bankruptcy filing to help them ease that debt burden.
- In 2010, 10.3 percent of those considered to be senior citizens (aged 65 and older) noted problems with medical debt; in 2003, that number was only 6.9 percent.
- Those without insurance were more likely to struggle with medical debt (31.5 percent of those without insurance reported such problems) compared to those with medical insurance (only 20.2 percent).
- Among low-income families (including both children and working age adults), the number of people struggling with medical debts rose to 29.2 percent in 2010 from 23.7 percent in 2003.
Study’s Findings Not Surprising
While a scientific reinforcement of the problems Americans are having with medical debt is somewhat chilling, given the high percentage of people affected by unmanageable medical debt, the findings of this study are not altogether surprising.
In Chapter 7 bankruptcy filings, medical-related expenses are frequently cited as a leading reason or contributing factor behind an individual’s decision to file for bankruptcy protection. That reality has not changed significantly since 2007.
One potential reason for this is that 2007 was the year when the bottom fell out of the housing market, sending the U.S. economy into a tailspin. As the economy shed millions of jobs, more and more Americans were left without sufficient income and without medical insurance, which is most frequently provided through employers in this country.
What the Future Holds for Medical Debt
In 2014, the Patient Protection and Affordable Care Act will go into effect, expanding the availability of Medicaid health coverage to most individuals and families who earn less than 138 percent of the poverty level. For those earning between 138 and 399 percent of poverty, the federal government plans to make subsidies available so that health coverage becomes more common for all Americans.
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