Health Care Issues - Written by Jere Beasley on Monday, October 13, 2008 10:18 - 0 Comments

Uninsured in this country pay $30 billion for health care

moneyonhealthcare 280x266Americans who go without for any part of 2008 will spend $30 billion out of pocket for care and they will get $56 billion worth of free care, according to a report released recently. Government programs pay for about three-quarters, or roughly $43 billion, of the bills for these uninsured people. Dr. Jack Hadley of George Mason University in Virginia and a team at the Urban Institute performed the study. It was written in the report:


Physicians’ donated time and forgone profits amount to $7.8 billion. After government payments to hospitals are subtracted, private philanthropy and profit margins are responsible for at least an additional $6.3 billion.

There are lots of misconceptions relating to the impact of having no . In fact, this study points out why coverage for those who are not covered is a good thing. Dr. Hadley observed in a statement:

From society’s perspective, covering the uninsured is still a good investment. Failure to act in the near term will only make it more expensive to cover the uninsured in the future, while adding to the amount of lost productivity from not insuring all Americans. The uninsured receive a lot less care than the insured, and they pay a greater percentage of it out of pocket. Contrary to popular myth, they are not all free riders.

On average, an uninsured American pays $583 out of pocket toward average annual medical costs of $1,686 per person, Dr, Hadley’s team reported in the journal Affairs. The report found the annual medical costs of Americans with private average far more — $3,915, with $681, or 17%, paid out of pocket. Current estimates show that 47 million Americans lack any , and 28 million have gone without for some part of the year. The U.S. Census bureau released new estimates on August 26th. If these people were better covered, they would spend more on care, the researchers predicted. The report concluded:

Adding the cost of the additional care to current spending by or for the uninsured, total medical care costs for newly insured people will be about $208.6 billion (roughly $3,800 per full-year-equivalent newly insured person), consisting of $122.6 billion in new spending on top of the $86 billion already in the system.

The report was published on the Internet at http://www.healthaffairs.org/.

Source: Reuters




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