Medical Debt and the Aging of America

Healthcare providers across the country are bracing themselves for the expected tidal wave of aging patients as the huge generation of Baby Boomers enters their senior years. 

For instance, by 2030 one out of every five U.S. citizens will be 65 or older.  By 2035...

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Medical Debt and the Aging of America

When the Elderly Can’t Pay
Their Medical Bills

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Jim is a South Carolina truck driver who was diagnosed with lung cancer in 2016. His treatment costs him $10,000 out of pocket each year. He’s thankful for his job, without which he could not afford to keep food on his table.

 

Jim is 78 years old and on Medicare.

​Our Aging Population

Healthcare providers across the country are bracing themselves for the expected tidal wave of aging patients as the huge generation of Baby Boomers enters their senior years.

Did you know that, by 2030, one out of every five U.S. citizens will be 65 or older? By 2035, seniors will outnumber children for the first time in U.S. history. This aging population is expected to impact medical services in a number of ways.

For example, more geriatricians will be needed to care for this influx of elderly patients. And providers in every field of practice will require more geriatrics training.

Another concern: Will these older patients be able to pay for necessary healthcare services?

Poor Health and Limited Means

As it currently stands, medical debt is a substantial and increasing problem among older Americans, according to a 2016 National Institutes of Health study. The combination of multiple chronic health conditions and limited financial resources is already taking its toll on America’s elderly. 

Consider the following:

• About 27% of Americans over age 65 have less than $500 saved for medical expenses.
• Seniors now comprise more than 15% of all Medicaid recipients, the highest rate ever.
• About 8.5% of elderly Americans routinely forgo or postpone necessary medical care because of the cost involved.
• Up to 32% of seniors with chronic diseases take less than their prescribed medications because of the high costs. 

The Cost of COVID for Seniors

A 2021 CDC study found that the cost of COVID-19 hospitalizations for senior citizens averaged nearly $22,000 in 2020. And for those who became critically ill, it was more like $50,000.

Average out-of-pocket costs for patients who were covered by Medicare, was more than $1,500.

But that is often just the tip of the iceberg, as far as elderly patients are concerned. The long-term costs of COVID-19 must also be considered. These can include skilled nursing care, rehabilitation programs, and treatment of worsening chronic conditions like heart and lung disease.

Source: MarketWatch

• A study in the Journal of General Internal Medicine revealed that out-of-pocket medical expenditures in the five years prior to an individual's death totaled more than $38,000, leaving 1 in 4 seniors approaching bankruptcy.

​Speaking of which, here’s another sobering statistic: The elderly now comprise one out of every eight bankruptcy filers. That’s nearly a fivefold increase since 1995.

​The main reason for their insolvency? Medical expenses that are unpayable on a fixed income.

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What Can You Do?

One thing medical practitioners can do to help address the growing problem of an aging population with mounting medical expenses would be to accept Medicaid. 
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Help for Medical Bills

The following organizations offer financial assistance for medical bills:

• Healthwell Foundation, 800-394-0161
• The PAN (Patient Access Network) Foundation, 800-394-0161
• CancerCare Co-Payment Assistance Foundation, 800 813 HOPE (4673)
• The Leukemia & Lymphoma Society, (800) 955-4572

If you’re not already a Medicaid provider, consider these benefits:

• Medicaid offers a large potential patient base. Right now, 82.8 million people are enrolled in the program — almost 25% of the U.S. population. In addition, every state publicizes a list of participating providers, so there’s no need to advertise.  ​

• Also, payment is guaranteed. In fact, Medicaid’s stream of income is sometimes even more reliable than private insurance.

• If you practice in Colorado (CSC's home state), Health First Colorado offers additional incentives during the federally designated COVID emergency: Providers may temporary enroll in the program with no application fee, fingerprinting or site survey required. 

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​Other ways you can help include offering financial counseling to your elderly patients, as well as flexible and interest-free payment plans.

​You can also refer low-income seniors to organizations that can help them pay their medical bills. (See box at left.)

Finally, if you haven’t done so already, consider enrolling in geriatrics training for your next CME course. As the demand for senior care rises, many states are expected to include a geriatric component in their mandatory CME for all providers.
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With 10,000 Americans turning 65 every day, prudent practitioners are planning ahead.

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Sources:
Featured Image: Pixabay
Greenville News
National Institutes of Health
Brookings Institution
National Council on Aging
Health Research Funding