Inadequate insurance coverage is one of the main causes of medical debt, American Hospital Association leaders say.
Molly Smith, group vice president for public policy at the association, wrote in a March 20 blog post that "affordable, comprehensive healthcare coverage is the most important protection against medical debt."
Short-term health plans and health-sharing ministries, which cost less than traditional insurance, can lure members in with deceptive marketing, Ms. Smith wrote. These members then discover they may be on the hook for large bills their plan doesn't cover, leading them to rack up medical debt.
High-deductible health plans also cause members to fall into debt when they can't afford high deductibles and copays, Ms. Smith wrote.
Enrollment in high-deductible plans continues to grow, with over 55 percent of private sector employees enrolled in the plans in 2021. Some studies have shown the plans lead to worse health outcomes, less use of preventive care and higher use of emergency rooms.
Potential solutions Ms. Smith identified include:
- Restricting high-deductible health plans to members who can demonstrate they can afford high cost-sharing
- Prohibiting health-sharing ministries and short-term plans that offer coverage for longer than 90 days
- Lowering maximum out-of-pocket limits
Read more here.