The survey of 36 hospitals by the Delaware Valley Healthcare Council found total bad debt grew by 12 percent, from $490 million to nearly $550 million while bad debt from insured patients rose from $76 million to $97 million, or 28 percent.
And in another survey of just 19 hospitals in the region, the percentage of bad debt attributable to patients with insurance rose from 20 percent in 2007 to 30 percent in 2009. “This has become an epidemic across the country,” said Kenneth Braithwaite, regional executive for the council.
Mr. Braithwaite blamed the rise in bad debt from the insured on increased use of high-deductible policies. He said these policies put the patient is on the hook for charges of $1,200 or more, while families have to pay as much as almost $12,000.
What’s more, he said, the healthcare reform law will be encouraging high-deducible policies. Health plans in the new healthcare exchanges can have deductibles of up to $2,000 for individuals and $4,000 for families, he said.
Read the Philadelphia Inquirer report on health insurance.
Read more coverage on health insurance:
Widely Used Federal Subsidies for Unemployed May Have Ended for Good
HHS Secretary Lists Reform Provisions About to Go Into Effect
House Passes Bill to Repeal Health Insurers’ Antitrust Exemption
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
