The Rising Cost of Care: How Recent Policies Threaten Healthcare Access and Affordability
Millions of Americans face a looming healthcare crisis as recent policy decisions threaten to dramatically increase costs and reduce access to vital coverage. A confluence of factors – expiring tax credits, proposed budget cuts, and regulatory changes - are poised to create significant hardship for families across the nation.
Premiums on the Rise: over 24 million individuals relying on affordable Care Act (ACA) Marketplace plans are bracing for considerable premium increases next year. Average premiums are projected to climb by over 25%, representing the largest requested rate change as 2018. The expiration of enhanced premium tax credits will exacerbate this issue, perhaps adding over $1,000 annually to the cost of coverage for approximately 22 million Americans.
Coverage at Risk: A concerning 15 million Americans are at risk of losing their health insurance altogether due to recent budget legislation. These cuts will disproportionately impact those enrolled in Medicaid, forcing many to forgo preventative care and rely on more expensive emergency room visits when health issues escalate. This shift will not only harm individuals but also strain the entire healthcare system through increased uncompensated care costs for hospitals. Moreover, even those retaining Medicaid coverage will face new financial burdens with the implementation of a $35 copay per service.
The Burden of Medical Debt: The situation is compounded by a lack of relief for those already struggling with medical debt.Approximately 15 million americans, carrying a collective $49 billion in medical debt, are being denied crucial assistance. Moreover, another 15 million are now at heightened risk of accumulating such debt as a result of potential coverage loss. Recent actions to weaken protections against reporting medical debt on credit reports will further destabilize families, making it harder to secure loans and build financial security.
Increased Out-of-Pocket Expenses: New regulations finalized earlier this year are projected to push nearly two million americans off their current coverage, while concurrently driving up out-of-pocket costs for those who remain insured. These changes will impact not only ACA plans but also employer-sponsored health insurance, increasing the financial strain on working families.
Prescription drug Costs Soar: Access to affordable medications is also under threat. A recent budget provision provides a significant financial benefit to pharmaceutical companies by shielding certain drugs from Medicare price negotiation. This decision is estimated to cost taxpayers $8.8 billion over the next decade and will inevitably lead to higher prescription drug prices for seniors and other Medicare beneficiaries. Rising launch prices for new medications are adding further pressure to the system, costing an additional $1 billion.
With over 90% of Americans prioritizing lower healthcare costs, it is imperative that policymakers work together to address this growing crisis. A collaborative approach is needed to ensure affordable, accessible healthcare for all.
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