Financial Burden of the Uninsured Growing

[Guest guest]

Financial Burden of the Uninsured Growing in Washington

December 13, 2007

Washington Insurance Commissioner Mike Kreidler has released a new

statewide report today that shows the costs of uncompensated health

care continued to rise in 2006, posing a threat to the overall health

security of all Washington residents.

In 2002, the statewide financial burden of uncompensated care was $457

million, according to the report. By 2006, it had ballooned to $584

million. Those costs are unpaid medical costs that hospitals,

physicians, community clinics and other providers must absorb when no

payment is received from the patient, an insurer or a third-party

payer. It is the sum of both bad debt and charity care.

This is Kreidler's third report identifying the number of uninsured

and the rising costs of uncompensated health care. The report

documents by county the financial obligation communities assume when

the uninsured and underinsured are unable to pay their medical bills.

" One troubling trend I see is that more of our state's uncompensated

costs are for the underinsured – people who actually have insurance,

but who can't afford to pay their medical bills because of the higher

deductibles and co-pays in today's health plans, " Kreidler said.

Strong employment growth in Washington between 2004 and 2006 resulted

in slight decreases in the rate of uninsured in many regions. Only the

Yakima/Tri-Cities region saw an increase in the number of uninsured.

But all regions experienced climbing uncompensated care costs.

" I know that many people who have health insurance wonder why they

should be concerned about the uninsured. The answer is that it costs

all of us, " Kreidler said. " When emergency services are provided and

the bill isn't paid, those costs get shifted to other payers

throughout the system. "

A total of 700,000 people in Washington state went without health

insurance for all or part of 2006. About 70 percent of the uninsured

are from working families. Middle-aged adults (35 to 64 years old) are

the fastest-growing uninsured group, the report indicated.

" As a state, we can no longer refuse to act on the problem of health

care coverage and access, " Kreidler said.

Kreidler plans to offer a health insurance reform proposal to the 2008

Legislature to provide a defined level of guaranteed health insurance

benefits for all Washingtonians, including catastrophic coverage for

major, unexpected medical costs and key preventive care such as

immunizations, cancer screenings and annual checkups. He plans to

release his proposal in January.

http://www.insurancejournal.com/news/west/2007/12/13/85641.htm