Nov 01
What “Underinsured” Means in Health Care
The fact that one out of six Americans has no health insurance has become old news around the country, and a new cause celebre in Washington. However another interesting statistic has emerged from a study conducted by the Department of Health and Human Services. Health care costs for the insured are rising, with 17 million of those under age 65 recognized as “underinsured.”
The Department defines this group as those who have insurance but still do not have “adequate financial protection” from high out-of-pocket health care costs,” according to the study. In this case, that means the number of Americans under the age of 65 who have insurance but still spend more than 10 percent of their family income on health care.
“We define the underinsured as persons who live in families that spend more than 10 percent of tax-adjusted family income on out-of-pocket health care costs (excluding premiums),” according to a study participant. That means that after paying your insurance bill each month, you’re spending an additional ten percent of your income on health care.
From another perspective, study reports that nearly 49 million Americans under 65 – including those with no insurance – lived in families that spent more than 10 percent of their tax-adjusted family income on health care when insurance premiums were included.
And about 19 million Americans under 65 lived in families that spent more than 20 percent of their income on health care.
In recognition of the obvious, the study shows that costs drove some people to delay or skip medical care for financial reasons. Those tough budget choices can have “severe consequences for those in poor health,” the researchers write.
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November 1st, 2007 at 3:38 pm
When the doodoo hits the fan, being underinsured with health insurance is almost as useless as being uninsured… the reality of bankruptcy is every bit as damaging, and it can lead to the thought that universal health care is the solution. Whether it is or not is open for debate, but this is part of the reason that people might want it.
Jerry
http://www.leads4insurance.com