subject: Health Insurance Plans Don't Guarantee Affordable Health Care [print this page] Many people expect that their health insurance plans will cover the cost of any health care situation that may go wrong. In most cases, health coverage does help reduce out-of-pocket costs. However, that may not be enough for those in dire financial straits.
Hospitals are increasingly finding that they are unable to collect money owed to them by patients who do have health insurance. Depending on their plan, patients can be responsible for anything from nominal co-payments to higher co-insurance percentages. High-deductible health insurance plans come with lower monthly premiums, so it is likely that they have become more popular during the recession. Individuals and families often buy these plans on the open market due to their lower sticker price, while employers are changing their medical benefits to share more costs with their employees.
Unfortunately, some new policyholders are unaware of the possible pitfalls. For example, a health plan may specify a 20 percent co-insurance percentage for hospitalization. Depending on the facility, length of stay, and procedures performed, the total could be $100,000 or more. A percentage of that is $20,000, an amount out of reach for many Americans today.
According to a hospital association--the Delaware Valley Healthcare Council of HAP--the percentage of "bad debt" (another name for debts considered uncollectable) from insured patients rose to 30 percent in 2009, from 20 percent in 2007. In monentary terms, that is over $97 million.
What can patients do? First of all, it is essential to become intimately familiar with their health insurance plans. High-deductible options can be suitable for many, but they must be aware of the increased out-of-pocket expenses. Creating a health savings account (HSA) with money resevered for that purpose could be helpful. In addition, more hospitals have begun offering installment payment plans earlier in the process.
