The Problem
Health care costs have skyrocketed in recent years. Despite having the best technology and most renowned experts in the world, America’s health care system is in crisis. If Congress fails to pass reform this year, experts say costs will grow another 70 percent in just 10 years. This will make it even harder for families and business to get the coverage they need.
The following facts demonstrate the urgency of enacting sensible reform now:
A majority of personal bankruptcy in America is for medical reasons.
- Six in every ten personal bankruptcies in America are caused by medical bills. Of those who filed for bankruptcy, 78 percent actually had health insurance. [American Journal of Medicine]
More than 100 million Americans are at risk of being denied health insurance due to a preexisting condition.
- One in three Americans -- 133 million people -- have a chronic health condition, like diabetes or high blood pressure. In 44 states, insurance companies can deny an individual coverage for having a chronic or "pre-existing" condition, meaning that nearly one-third of the U.S. population is at risk of being denied health care coverage. [Association of Schools of Public Health, May 13, 2009; Center for American Progress, April 2009]
Health care costs are eating up a huge portion of the U.S. economy.
- In 2009, the United States will spend a staggering $2.5 trillion -- over 17.5 percent of GDP -- on health care expenses. [Health Affairs]
Fewer small businesses are offering insurance because of costs.
- Between 2000 and 2007, the percentage of small firms offering their employees health insurance fell by 13 percent and more than two-thirds of small businesses switched to plans that covered fewer services or had higher out of pocket costs. Nearly one-third of the uninsured -- 13 million people -- are employees of firms with fewer than 100 workers. [Current Population Survey, March 2008, and Kaiser Family Foundation, September 2008]
Twenty percent of employers plan to end insurance benefits because of costs.
- Unless the current health care system is reformed, nearly 20 percent of employers plan to drop employee health insurance altogether over the next three to five years. [Center for American Progress, May 2009]
Families are finding it increasingly difficult to pay medical bills.
- In 2007, nearly 20 percent of Americans – more than 57 million people – had trouble paying their medical bills. That’s a 28 percent increase since 2003. Of those struggling to pay for health care, almost three-quarters had some form of health insurance. [Commonwealth Fund, August 2008]
Waste and inefficiency in the health care system costs billions.
- Wasteful and inefficient spending in the U.S. health care system costs roughly $700 billion a year – effectively levying a $20 surcharge on every American man, woman and child. [http://www.cbo.gov]
The number of uninsured is expected to increase by more than 50 percent.
- Currently 46 million people in the United States are uninsured. In the absence of comprehensive health care reform, this number is projected to rise to about 72 million by 2040. [The White House, Economic Case for Health Care Reform, June 2009]
Costs lead to diminishing benefits and higher deductibles.
- Because of rising health insurance costs, employers are increasingly offering coverage that requires employees to pay more out of pocket for health care. In one year, the percentage of workers enrolled in insurance with a deductible of $1,000 or more jumped from 12 percent to 18 percent. [Kaiser Family Foundation, September 2008]
The individual market offers few options because of high costs.
- According to a study by the Commonwealth Fund, more than two-thirds of people shopping for health insurance in the individual market found it “difficult or impossible to find adequate coverage.” [Center for American Progress, May 2009]
The number of uninsured middle-class families is expected to rise because of costs
- According to the Robert Wood Johnson Foundation, the number of middle-class families without health insurance probably will jump 45 percent by 2019. [Robert Wood Johnson Foundation]
Most uninsured Americans are employed but have no coverage.
- 86.7 million Americans went without health insurance for some period of time during 2007 and 2008. Of these uninsured, four out of five were from working families who did not get coverage from their employer. [Families USA, March 2009]
To learn more about the legislative proposals being discussed in Washington, click here.
To contact your member of Congress and take action in support of health reform, click here.
