Axios reports new findings, in partnership with Johns Hopkins, that medical debt continues to rise. Rising medical debt should come as no surprise as insurers shift more costs onto patients through deductibles, coinsurance and more. People who need hospital care are hit with some of the largest medical bills, at times driving them into medical bankruptcy.
Nearly six in ten people in debt (58 percent) in the US are faced with collection notices because of a medical expense. Hundreds of thousands of people have been forced to file for medical bankruptcy.
Some hospitals sue patients. Others get liens on their patients’ income. The hospitals might claim a portion of a personal-injury settlement.
Ten hospital chains are extremely litigious. Their lawsuits comprise 97 percent of all cases against patients. Two Virginia hospitals are the biggest offenders: VCU Medical Center in Richmond and University Hospital in Charlottesville. They claim to have now stopped suing patients.
As it is, many hospitals charge significantly more than their cost for the services they deliver. More than half (57%) of the top 100 hospitals charge at least five times more than their cost. And, some charge ten times more than cost. Chippenham Hospital in Richmond, Virginia has the highest markup. Even when hospitals don’t collect the full amount of their bills, they find that charging higher prices leads to higher revenue.
People generally cannot and do not price shop for hospital care. They go to the hospital with which their doctors are affiliated. Moreover, information on the cost of their care is generally not available in advance of a procedure. (Federal law requires hospitals to post their prices, but most are not doing so and people cannot know in advance, let alone control, which ancillary tests and procedures they will receive.)
Here’s more from Just Care:
- Thousands of Americans with medical debt arrested each year
- Coronavirus: Medicare covers hospital care at home
- Don’t trust Medicare star ratings
- One third of Social Security benefits spent on Medicare costs
- If we reduce administrative costs, we lower health care costs
