[Occupymendocino] Health care:Many lower and moderate income Americans who can't cover their cost sharing if they get sick

[Richard Karch]

Axios
November 22, 2017
The biggest health issue we aren’t debating
By Drew Altman

Thanksgiving is always a time to think about those in need. How about, then, a group we don't worry about enough: the many lower and moderate income Americans who can't cover their cost sharing if they get sick? It raises the question: How much cost sharing is too much?

High deductible plans, which require people to pay large amounts out of pocket before their medical bills are covered, are a good deal for some middle and upper income people. But many lower and moderate income Americans simply don't have $1,500 to $3,000 to pay for the colonoscopy that might save their life, or a stress test that might reveal the heart disease which is the cause of their chest discomfort.

Share of non-elderly households with liquid assets less than their deductibles, among people with private insurance:

Deductible of $1500 single/$3000 family:
28%  All non-elderly households
63%  Less than 150% of federal poverty level (FPL)
44%  150-400% of FPL
10%  400% or more of FPL

Deductible of $3000 single/$6000 family:
40%  All non-elderly households
76%  Less than 1505 of FPL
60%  150-400% of FPL
20%  400% or more of FPL

The chart, drawn from a new study, tells the tale: More than four in 10 households with private coverage and incomes between 150% and 400% of the federal poverty line do not have enough liquid assets to cover a deductible of $1,500 for single people and $3,000 for families.

*  That's not a high deductible plan, but about the average in an employer-provided insurance plan.

*  Sixty percent couldn't cover deductibles double those amounts, which are not uncommon, especially in the individual insurance market.

For many families, even if they have insurance, any significant illness could wipe out all their savings, making impossible to fix a broken car to get to work, or pay for school, or make a rent or mortgage payment.

Congress has passed no law declaring that the country will go with high deductible coverage as its main approach to health insurance.

https://www.axios.com/the-biggest-health-issue-we-arent-debating-2511098849.html <https://www.axios.com/the-biggest-health-issue-we-arent-debating-2511098849.html>

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