A single hospital stay could wipe out the patient's savings
A new study found that many people on Medicare with low to moderate incomes don't have enough money to pay for a hospital visit.
Here's the problem:
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Medicare helps older people pay for healthcare, but it doesn't cover everything.
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People still have to pay some costs out-of-pocket, like a deductible for hospital stays.
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The study found that 30-50% of people on Medicare with lower incomes wouldn't be able to afford this deductible.
Who is most affected?
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Black and Hispanic people
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People with less education
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People with many health problems
Why is this important?
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Many people on Medicare could end up in a tough spot financially if they have to go to the hospital.
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The study suggests that we need to find ways to better protect people on Medicare from these high costs.
About the study
Researchers from the University of Pennsylvania Perelman School of Medicine used data from the 2018 wave of the Health and Retirement Study (HRS) to identify Medicare-enrolled respondents who would face financial precarity if exposed to the Medicare Part A hospital deductible of $1,600.
The researchers focused on respondents making greater than 100% to 400% or less of the federal poverty level, or the so-called economic middle of Medicare recipients. This group includes people who earn too much to qualify for Medicaid but still may qualify for financial assistance in other programs.
Financial precarity was defined as having insufficient funds to pay the Medicare hospital deductible and examined across 4 scenarios that considered checking and savings account balances, total liquid assets (with a reserve for future living costs), and supplemental insurance.
The researchers found that between 34.6% and 50.7% of the beneficiaries studied would face financial precarity if hospitalized because they would not have sufficient resources or supplemental insurance to cover associated out-of-pocket costs.
Considering that just one hospitalization could deplete the financial resources of a large proportion of Medicare beneficiaries, these findings suggest a need to broaden financial protections for those with moderate incomes and limited assets.
The findings are published inAnnals of Internal Medicine.
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Posted: 2024-10-29 14:16:28