A quarter of Americans owe $10,000 or more in medical debt, even though half of them have health insurance that's supposed to minimize excessive health-care costs, a new survey finds.
From a selection of survey options, 46% of respondents with medical debt selected emergency room visits as the biggest reason for their debt. Just over 30% of respondents also selected Covid-19 treatment, and 23% also selected mental health treatment, according to a survey by Affordable Health Insurance, which polled 1,250 Americans.
Around 55% of the total respondents report having medical debt of some kind, saying that it affects their other financial goals. In fact, nearly half of people with medical debt say that it has prevented them from buying a house or saving for retirement.
Health insurance doesn't seem to matter when it comes to medical costs
The survey found that carrying health insurance doesn't seem to make much difference in whether you have to take>It's not easy to balance the cost of monthly premiums with deductibles
The reason why many people choose high deductible plans is because they tend to come with lower monthly premiums, which can cost hundreds of dollars.
However, policyholders with high deductible/low premium plans are less likely to seek out primary or preventative care due to high upfront costs, according to the American Academy of Family Physicians. Since many medical problems are unexpected and exacerbated by a lack of preventive care, policyholders can quickly find themselves in debt, especially when they have to pay the full, yearly deductible amount.
Including deductibles and premiums, Americans spend an average of $12,530>How to minimize health insurance costs
Higher deductibles typically correspond with smaller monthly premiums, but both can vary, as can the services which can be excluded from the deductible, like doctor visits or prescription drug costs. That's why Ali recommends that policyholders assess their health needs and compare that with what each policy's benefits actually offer when choosing a plan.
To minimize medical expenses>More debt relief is available this year
As of 2022, policyholders have new protections against "surprise billing" by out-of-network providers.
The newly enacted legislation prevents emergency rooms from charging out-of-network rates, although there are exceptions as to when and where these protections apply. Ambulances are not included as part of the legislation, for example.
You can find more information about your rights as a consumer here.
