BY ANDY MARSO amarso@kcstar.com
While traveling
through Kansas talking about health care, David Jordan has heard story after
story about people drowning in a sea of medical bills they can’t pay.
So Jordan, the
president of the United Methodist Health Ministry Fund, said he wasn’t
surprised when one of the largest surveys of Missouri and Kansas health care
consumers ever conducted showed that medical debt was one of their top
concerns.
“One story comes
to mind,” Jordan said. “In Pratt, Kansas, the owner of a property
rental business, in the context of Medicaid, highlighted that oftentimes her
tenants are choosing between paying their rent and paying their medical bills.
They struggle with this decision and one month they might pay their medical
bills and other months they might choose to pay their rent. As a result,
oftentimes she has a third to half of her accounts defaulting.”
The survey of 4,274
people was commissioned by five nonprofit health foundations and conducted in
2017 by the Research Triangle Institute.
It found that 33
percent of Kansas kids and 28 percent of Kansas adults lived in a household
that struggled to pay medical bills the year before. In Missouri, it was even
more common, with 38 percent of kids and 34 percent of adults in households
that struggled with bills.
Almost 20 percent of
respondents in both states said they had faced financial consequences from
medical debt, either asking family and friends for help, seeking personal loans
or getting hounded by debt collectors.
The survey results
come on the heels of an Urban Institute study released in
December that showed that in some areas of Kansas
City, about 30 percent of households have medical debt in collections.
Jordan said that can
have a ripple effect on local economies by harming credit ratings while also
making people less likely to seek medical care.
“Medical debt
and lack of insurance is financially crippling families in Kansas and
Missouri,” Jordan said.
The survey showed
that about 20 percent of adults ages 19 to 64 in both states are uninsured, and
about 60 percent of them are working. The uninsured rate in children, who are
often eligible for Medicaid, was much lower.
Uninsured rates were
slightly higher for black Kansans and Missourians than whites, but markedly
higher — about 50 percent — among Hispanics.
“The stark rate
of Hispanics who are uninsured has to be called out,” said Bridget
McCandless, the president and CEO of the Health Care Foundation of Greater
Kansas City.
Jordan and the
leaders of the various health foundations have advocated for the legislatures
of both states to expand Medicaid to low-income adults under the Affordable
Care Act. A majority of states have expanded and Jordan said they have higher
insured rates and lower rates of medical debt.
Medicaid eligibility
in Kansas and Missouri is currently restricted mainly to children, the elderly,
people with disabilities and pregnant women.
Legislators who
oppose expansion under the ACA, commonly called Obamacare, have said Medicaid
should remain a program for those populations. They also balked at the expense
of funding expansion, which requires states to shoulder up to 10 percent of the
costs.
Being uninsured is
not the only factor in medical debt, though. The survey’s authors said some
respondents who reported being insured also reported struggling to pay medical
bills, though they had not broken out what percentage yet.
Sheldon Weisgrau, the
director of a grant-funded program to get Kansans signed up for health
insurance, said higher deductibles and co-pays mean even people covered under
private insurance plans often find themselves with bills they can’t easily pay.
“Under-insurance
is a huge problem,” Weisgrau said.
McCandless said
nonprofit hospitals can help ease the problem in the Kansas City area.
As part of the
“community benefit” they must show to keep their tax-exempt status,
nonprofits are supposed to write off or write down some bills for low-income
residents.
McCandless said she
thought hospitals have improved their record of doing that, but “still
have room to go.”
“As hospitals
are making more financial decisions around their bottom lines, it is critical
that we as taxpayers continue to make sure that that community benefit returns
to the community,” McCandless said.
In addition to
medical debt, Kansans and Missourians reported problems accessing some types of
medical services.
Lack of dental
insurance was a problem in both states, and so was access to mental health
care.
People who couldn’t
get mental health care said they either could not afford it, could not find a
provider who takes their insurance, could not find a provider who had an
opening or didn’t know where to find care.
Brenda Sharpe, the
president and CEO of the REACH Healthcare Foundation, said she hoped those
responses will push lawmakers to expand access to mental health.
“This is a hot topic in both states,” Sharpe said. “But we’ve seen very little action.”