More insured Americans are charging copays and uncovered healthcare costs and, consequently, developing greater credit card debt, according to a new report by Demos and the Access Project. Twenty-nine percent of low- and middle-income households with credit card debt reported that medical expenses contributed to their current balances. Within that group, 69% had a major medical expense in the previous three years. Those with medical debt had a credit card debt of $11,623 versus $7,964 for those without medical debt. The medically indebted are also more likely to be called by bill collectors than those without such debt (62% versus 38%). And average credit card debt was higher for those without health insurance ($14,512) than for those with coverage ($10,973).
Among the reforms the report calls for are national guidelines to differentiate medical debt from consumer debt; preventing providers from sponsoring credit cards and revolving lines of credit; and increased oversight of medical credit cards and lines of credit attached to health savings accounts. Demos is a nonpartisan public policy research and advocacy organization; the Access Project conducts research on improving health care and access to medical care. Read the report.
