Employers May Be Picking Up The Bill For The Uninsured
Employers and employees are forced to pay higher premiums for family health insurance policies to compensate health care providers for unpaid expenses incurred by the uninsured, according to a study by health care consumer advocacy group Families USA.
On average, Families USA concluded, companies that provide group health insurance to employees will pay an additional $922 per family this year in health insurance premiums to cover the costs of the uninsured. By 2010, researchers project, the additional cost per family will rise to $1,502.
Conducted by Emory University Public Health Professor Kenneth Thorpe, the study is based on an analysis of data drawn from the U.S. Census Bureau, the National Center for Health Statistics, the federal Agency for Healthcare Research and Quality, and other sources. The objective of the study was to establish who pays for the uninsured Americans unable to pay for their own care.
Results of the analysis showed that hospitals and physicians will spend $43.1 billion treating uninsured people who will be unable to pay their bills. Just 35% of the costs incurred by the uninsured are actually paid by the individuals who receive the care, the report found. These uncompensated costs are covered by three sources: federal, state, and local programs that provide partial reimbursement to health care providers; non-patient, non-government revenue sources; and higher premiums for people with private health insurance.
"The large and increasing number of uninsured Americans is no longer simply an altruistic concern on behalf of those without health coverage but a matter of self-interest for everyone," said Ron Pollack, Executive Director of Families USA. "The stakes are high both for businesses and for workers who do have health insurance because they bear the brunt of costs for the uninsured."
The cost of uncompensated care is especially high in states with large numbers of uninsured people, the study noted. In 11 states, employer-provided family health coverage costs an additional $2,000 or more annually as a result of these costs, researchers concluded. These states include New Mexico ($3,169), West Virginia ($2,940), Oklahoma ($2,911), Texas ($2,786), Arkansas ($2,748), and Florida ($2,248).
"These extra costs place unacceptable burdens on all families, as well as our small businesses, and our medical providers," said Kansas Governor Kathleen Sebelius. "We must find affordable ways to cover more workers and their families. States must work with the federal government to make such coverage a reality."
