Pandemic Measures Helped Cut Medical-Bill Struggles, Study Shows

Fewer American families struggled to pay their medical bills in 2021, according to a new report, a sign that efforts to broaden access to health care and insurance are succeeding.

(Bloomberg) — Fewer American families struggled to pay their medical bills in 2021, according to a new report, a sign that efforts to broaden access to health care and insurance are succeeding.

About 11% of people belonged to families that had trouble paying medical bills in 2021 — down from 14% in 2019, the last full year before the pandemic, according to a study of thousands of US households by the Centers for Disease Control and Prevention’s National Center for Health Statistics. Those who struggled in many cases had low family incomes, were uninsured or resided in states where Medicaid coverage hasn’t been expanded.

The decrease in those reporting trouble with medical expenses continues a downward trend from 2011, when nearly 20% said their families were struggling.

The data show how Covid-19 policies have helped to insulate Americans from some medical costs. Starting in 2020, states kept people on their Medicaid programs, suspending the usual process of checking whether they remained eligible for the benefit. That helped boost Medicaid enrollment by almost 20 million since February 2020, though eligibility verifications are expected to resume this year. In 2021, Congress also extended subsidies for health insurance in the Affordable Care Act marketplaces, increasing uptake of those plans.

Insurance has a big impact on families’ debt, according to the report. For those 18 to 64, 20% of those who were uninsured reported their families were having trouble with medical bills. That compares to 13% for those with Medicaid and CHIP coverage and 9% for those with private coverage.

Additionally, bills such as the CARES Act provided direct monetary payments, which affected people’s finances.

In the early months of the pandemic, fewer people sought out preventive and elective medical care, outpatient visits and emergency visits, which also likely reduced medical debt.

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