Patients’ Financial Responsibilities are Destroying Practices

The argument that patients’ deductibles will rise as a result of Obamacare is over as we have all seen it time and again in every state. What is now going to start making headlines is not only the damaging effect it has on personal finances but also the impact this change has on medical and dental practices, as well as hospitals. Here’s a quick look at the numbers:

  • 41% of employees who get health coverage at work have deductibles of at least $1,000; in 2006, only 10% of employees had such a deductible – Kaiser Family Foundation
  • The average deductible for the 7 million new Obamacare enrollees is $2,267 (for the most popular silver tier) – Robert Wood Johnson Foundation
  • 86% of insured Americans do not understand what is meant by “copays”, “deductibles”, “out of pocket maximums”, and “coinsurance” – Journal of Health Economics
  • 44% of U.S. households have less than 3 months of savings – Corporation for Enterprise Development

These statistics are staggering as they clearly show . . . Americans’ health insurance responsibility is rising, most (86%) do not understand what that means, and many will not be able to pay their medical and dental bills going forward. After we get through the politics of this upcoming November 2014 election, I predict that this impact on medical providers will start to become public knowledge. Combined with Americans paying their taxes the first part of next year, I believe 2015 will be a very heated year for the discussion of the impacts of healthcare reform that have now hit our society.

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Contact ABISA, a consultancy specializing in solo and small group practice management. Visit us at ABISALLC.com.

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