If Liz were Queen

This means that inadequate coverage even for those with insurance – in the form of high deductibles, high copayments, and benefit restrictions – plays a key role in making health care unaffordable for these families. And in fact, individuals in high-cost households are twice as likely as individuals in lower-cost households to have purchased health insurance directly from an insurance company, rather than obtaining coverage through an employer.⁵

SOURCE:  Center for Financing, Access and Cost Trends, Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey, 2002-2006.

The families and individuals who experience the highest levels of out-of-pocket costs are more likely to be women and older in age (although not old enough for Medicare). And they are significantly more likely to suffer from common diseases such as diabetes, heart disease, and cancer. Middle class families with high out-of-pocket expenses currently spend 21 percent of their income on health care services – and that’s not including their premiums. The burdens of high-cost households highlight failures in our health system that must be addressed to provide stability and security for all Americans.

Under health insurance reform, the amount that families pay out of their own pocket will be capped through annual out-of-pocket limits. In addition, families will also no longer face annual or lifetime limits to their benefits, nor will coverage be denied or watered down based on medical history.

Health insurance reform will ensure that health coverage is meaningful and that all Americans can receive necessary care without the looming threat of medical debt.