HEALTH/BENEFITSWIRES » Average medical debt in lowest-income ZIP code — $677
Health Care: America’s » Average medical debt in highest-income ZIP code — $126 Largest Source Of Debt Forget credit cards or student loans. Health care is America’s largest source of debt
Source: Harvard Business School
that is in collections, according to new research from Harvard Business School, Stanford University, the National Bureau of Economic Research and the University of California at Los Angeles. The researchers found collection agencies held $140 billion in unpaid medical bills in 2020, up from $81 billion in 2016. About 18% of Americans hold medical debt that is in collections, researchers said, making unpaid medical bills the largest source of debt that Americans owed collections agencies between 2009 and 2020. Medical debt is different from other forms of debt, the researchers said, because those who owe that debt often didn’t have a choice in racking up those bills. Debt also appears to be more concentrated in ZIP codes that correlate to lower incomes, the researchers found. Another way medical debts are different? They are much less likely to be repaid, researchers said.
AN END TO THE BIRTHDAY RULE?
New parents frequently find themselves snagged by something called the “birthday rule” — an obscure health insurance policy rule that often ends up costing them thousands of dollars soon after welcoming a baby into the world. The birthday rule dictates how insurance companies pick the primary insurer for a child when both parents have coverage: The parent whose birthday comes first in the calendar year covers the new baby with their plan first. But the rule can strangle new parents with medical expenses if the parent whose birthday comes second in the calendar year has a policy with more generous benefits. U.S. Rep. Sharice Davids, D-Kan., introduced the Empowering Parents’ Healthcare Choices Act, a bill that would do away with the birthday rule and a “coordination of benefits policy” that trips up first-time parents when it’s time to sign up a new baby for insurance. This
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model regulation was set by the National Association of Insurance Commissioners and adopted by most states.
GIG WORKERS PAYING MUCH LESS FOR HEALTH INSURANCE
Gig workers have traditionally lacked access to affordable, quality health insurance. But that appears to have changed, according to Stride, a benefits platform for independent workers. The American Rescue Plan enabled more gig workers to enroll in coverage through Healthcare.gov, and those workers are paying less for health insurance. Stride’s data showed gig worker enrollment in health insurance increased sixfold in April 2021 compared with the same time last year.
QUOTABLE Clearly, there’s strong demand for quality, affordable health insurance among gig economy workers. — Noah Lang, co-founder and CEO of Stride
More than one-third (37%) of independent workers are paying less than $1 per month for coverage. The vast majority (93%) of gig workers received subsidies to help them afford health insurance.
DOLLAR GENERAL MAKES PUSH INTO HEALTH CARE
Dollar General is the latest retailer seeking to become a health care destination. The company hired a chief medical officer as it plans to make a push into health care. In addition, the store’s customers will see more health products — such as cold medications and dental care items — on the shelves. CEO Todd Vasos said Dollar General’s new push is inspired by customers who said they want more convenient and affordable health care products and services. The discount retailer has more than 17,400 stores throughout the country, most of them in rural areas that don’t have many pharmacies nearby.
Missouri Supreme Court reversed a lower-court decision that found the state's Medicaid expansion unconstitutional. Source: St. Louis Post-Dispatch
InsuranceNewsNet Magazine » September 2021
