Costs to Cover All Uninsured Persons Delineated
The ongoing debate about the health insurance crisis across the United States is gaining steam with the upcoming presidential election. The current issue of the journal Health Affairs includes an article which details costs should coverage be expanded to all persons.
Three issues are central to the insurance coverage debate across the country. That includes the amount of care required to tend to the persons who are uninsured, the amount of care delivered that is currently “uncompensated” and how that is paid for, and the financial costs of providing care for the uninsured.
Two different methods were created to assess these complex questions. In the first, data from more than 100,000 people was examined. That was collected through the 2002-2004 Medical Expenditure Panel Surveys (MEPS). The second method evaluated surveys completed by healthcare providers and data from government budgets.
In 2008, data indicates that the total cost of uncompensated care will be between $54.3 and $57.4 billion. Of that, $35 billion is paid out by hospitals. An additional $14.6 billion is from community-based healthcare providers and $7.8 billion is provided by private clinicians.
Although an array of sources support uncompensated care, the majority is funded by public funds. This is estimated around 75 percent or $42.9 billion. Private funding is estimated around $14.5 billion, though this may actually be higher.
One noteworthy finding is that the uninsured pay a larger share of out-of-pocket costs than do people who have complete insurance coverage. However, the uninsured still receive half as much care as those with insurance, 17 percent compared to 35 percent.
Another issue investigated is how much care uninsured patients will begin to use when they gain coverage. In light of the fact that the uninsured are healthier and younger than those with coverage, it is estimated that they will not use the same amount of care as the insured. The increase is expected to increase from $2,290 to $3,885 per person.
Current expenditures indicate that 75 percent of uncompensated care is paid for by the federal government. If programs were implemented to provide coverage for all Americans, increases around $122.6 billion are anticipated. That increase is 0.8 percent of the gross domestic product and five percent of all healthcare spending in the U.S.
August 26, 2008 Related topics: Finance