Reed Abelson reports for The New York Times on a Trump administration regulation that would have enrollees with unaffordable medical bills borrow money from their insurers. Of course, they would need to repay the loans with interest.
Rather than prohibiting insurers from offering high-deductible health plans that end up being financial obstacles to care or limiting insurer profits and putting that money toward lower out-of-pocket health care costs or guaranteeing everyone Medicare, the Trump administration wants people to accrue more medical debt to cover their private health care costs.
Today, about 100 million Americans have medical debt. Insurance company loans only worsen people’s plight. It would likely mean that many of the hospitals and other health care providers that currently offer no-interest loans to people who can’t afford their deductibles and copays would stop offering them.
To date, Congress has refused to extend subsidies for people in Affordable Care Act health plans and has been unwilling to offer Americans a lower-cost public insurance option modeled on traditional Medicare. Consequently, average premiums for plans in the state health insurance exchanges are up, from $113 a month to $178 a month, and include an average $4,000 deductible and an out-of-pocket limit that is more than $10,000 for an individual.
The Trump administration rule allows insurers to provide limited coverage that requires tens of thousands of dollars in out-of-pocket costs for people who need complex care. The rule allows health plans with $31,000 deductibles!!!! These plans might cover treatment for cancer but are high risk. They would not cover basic health care needs; they are likely to lead most people to skip critical medical treatments.
No one should be gambling with their health and their lives because their health insurance leaves them unable to afford the care they need. Even if you think you’re healthy and will not likely need care, you could need costly care tomorrow. It’s not uncommon for people to take bad falls, whether on a slippery road or when playing sports. When that happens, you want to know that your insurance will cover whatever treatments you need.
Here’s more from Just Care:
- Health insurance spending projected to rise 9 percent in 2027, while almost half of working Americans struggle to pay for health care
- Lower health insurance costs usually mean higher health care costs
- Poll: Costs remain a major barrier to care
- Medical debt plagues 100 million Americans
- High-deductible health plans mean high risk
