America’s medical debt totaled $140 billion in 2020, twice as much as previously thought. Unpaid medical bills are the largest source of debt that Americans owe collection agencies — the new figures do not account for medical bills on credit cards or lawsuits hospitals file against patients without going through third-party collection agencies. The high rate of medical debt is a direct result of the high cost of health care and poor insurance coverage in the United States. A public option, if structured properly, could go after both of those fronts.
During the 2010 Affordable Care Act (ACA) debate, many Democrats suggested that a public option could compete with private insurance plans to bring down costs and thus make coverage more affordable and attainable. While this is true, there could be even greater benefit if instead of simply using competition, the public option was structured in a way that would lower costs for everyone — not just those on the plan.
Read Full Article »