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Majority of debtors to US hospitals now people with health insurance

www.theguardian.com Majority of debtors to US hospitals now people with health insurance

Analysts say a ‘sea change’ occurred in the American healthcare system from when only a tenth of debt came from the insured

Majority of debtors to US hospitals now people with health insurance

People with health insurance may now represent the majority of debtors American hospitals struggle to collect from, according to medical billing analysts.

This marks a sea change from just a few years ago, when people with health insurance represented only about one in 10 bills hospitals considered “bad debt”, analysts said.

“We always used to consider bad debt, especially bad debt write-offs from a hospital perspective, those [patients] that have the ability to pay but don’t,” said Colleen Hall, senior vice-president for Kodiak Solutions, a billing, accounting and consulting firm that works closely with hospitals and performed the analysis.

“Now, it’s not as if these patients across the board are even able to pay, because [out-of-pocket costs are] such an astronomical amount related to what their general income might be.”

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