Article Summary –
Kris McConnell and her husband, residents of central Pennsylvania, currently owe $13,000 in emergency medical bills despite having insurance coverage. One in three adults in the U.S. struggle with medical debt, with rural residents particularly affected due to higher rates of unemployment and lack of insurance. To address this, Pennsylvania Governor Josh Shapiro has proposed allocating $4m in the 2024-25 budget to relieve some residents of their medical debt, a move that could potentially erase up to $400m in debt.
Pennsylvania Couple Struggles with Mounting Medical Debt Despite Good Insurance
Kris McConnell and her husband, residing in central Pennsylvania, are struggling with about $13,000 in medical debt despite having good insurance. This is an outcome of emergency surgeries they underwent following a car accident and to manage severe gastrointestinal issues.
The financial obligation is overwhelming, leading McConnell, 59, to avoid non-emergency health care due to mounting costs. This worry over healthcare costs is causing her health to deteriorate as she can’t afford the necessary medication for her gastrointestinal issues.
Pennsylvanians are Struggling with Unpaid Medical Bills
McConnell is not the only one dealing with medical debt. Nearly one in three adults in the United States are struggling with unpaid medical bills. In Pennsylvania, about 1 million people carry medical debt, and rural residents are the most impacted.
Medical Debt: A Leading Cause of Bankruptcy in the U.S.
Medical debt is a leading cause of bankruptcy in the U.S. The high costs of unpaid medical bills can deter people from seeking further medical care.
Addressing the Medical Debt Crisis
Democratic Gov. Josh Shapiro proposed allocating $4 million in his 2024-25 budget to erase medical debt for some Pennsylvanians. This initiative aligns with legislation introduced by Democratic state Rep. Arvind Venkat and passed by the Democratic-led House last year.
Who Qualifies for Medical Debt Erasure?
Residents would qualify for medical debt erasure if their annual income is 400% of the federal poverty limit or less, or if the amount owed is at least 5% of their annual income. A vendor selected to oversee the program would inform individuals whose debt was purchased and thereby eliminated.
Addressing the High Costs of Medical Care
“Erasing medical debt is a practical, commonsense way that we can deliver real relief for folks all across Pennsylvania,” said Shapiro. The high medical debt in Pennsylvania is a result of unequal healthcare access, low-wage jobs without health insurance benefits, and high prescription drug costs, among other issues.
The Impact of Medical Debt Erasure
Erasing medical debt will allow citizens to afford necessary medical care, and even other basic needs like rent, food, and education. This relief could facilitate more timely preventive care, reducing the risk of worsening medical conditions, as explained by Dr. George Garrow, the CEO of Primary Health Network.
One of Venkat’s patients, a woman with back pain, was later diagnosed with terminal breast cancer. She had delayed seeking medical help due to her fear of incurring more medical debt. Erasing medical debt could prevent such tragic outcomes.
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