Insured but Indebted: Why Americans Say Health Insurance Is Failing Them | Insurify

Fears over soaring healthcare costs fueled Washington's government shutdown, and surveyed voters appear fed up. Beyond concerns about rising Affordable Care Act premiums, a new survey shows most voters have lost faith in the nation's entire health insurance system and are demanding change.

Research by PerryUndem for the non-profit organization Undue Medical Debt and the University of Chicago's National Opinion Research Center found nearly three-quarters (74%) of voters see the U.S. health insurance system as "mostly failing" to protect them from medical debt. This view spans political lines as 79% of Democrats, 77% of independents, and 66% of Republicans agree the system is broken.

"I think [the health insurance system] is broken," a Florida voter with Obamacare coverage told pollsters. "[The cost] goes up every year and way beyond the rate of inflation or your cost of living. We just never seem to get a break. It just gets more and more expensive. Even when you look at the Marketplace, it seems like you just get less coverage, a higher deductible."

A system that no longer works for most

Just 31% of voters say healthcare is affordable today, while 69% say it's not, the survey found. Even those with insurance are struggling, according to the findings:

35% of voters report carrying medical or dental debt.52% fear going into debt for care.35% say they've skipped or delayed treatment because of cost concerns.

Those fears often come with a steep emotional price. More than half (57%) of those with medical debt said the mental stress and anxiety they feel are worse than the financial burden.

The study's focus groups revealed that many Americans blame corporate greed and complex insurance structures more than hospitals or doctors. Participants described a system that feels rigged and indifferent to the average person's needs.

"While we're struggling, the CEOs are just filling their pockets," said a Los Angeles man covered through his employer.

Insurance that fails to insure

Although 84% agree insurance should prevent debt, survey respondents said reality is different.

Two-thirds (66%) of respondents reported being dissatisfied with the current health insurance system, including a quarter who were "not at all satisfied."

A major driver of that frustration, according to the survey results, is the spread of high-deductible health plans (HDHPs). These plans, marketed for lower premiums, are deeply unpopular in practice:

70% of respondents view them unfavorably.The same percentage say they're unlikely to enroll in one.Only 29% say they'd even consider such coverage.

One Iowa voter summarized the problem, saying, "People are going to want to pay the lower premiums, but then when they need healthcare, they're not going to do it because they can't afford that cost out-of-pocket."

The cost of coverage tied to work

The survey also found that 76% of respondents wanted to move away from the employer-based system, favoring a model where people can change jobs or become self-employed without losing health coverage.

That idea again crossed party lines, with 85% of Democrats, 79% of independents, and 65% of Republicans supporting the reform.

Many respondents also said the employer-centric system traps people in jobs, penalizes entrepreneurs, and leaves millions uninsured or underinsured between jobs.

What's next? An opening for political action

In a rare moment of bipartisan alignment, 76% of respondents said they want their states to pass laws protecting residents from medical debt.

Respondents also showed strong consensus around specific reforms, including limiting interest rates on medical debt (94% support), restricting collection agencies from seizing property (90%), requiring hospitals to offer standardized financial assistance (89%), and banning medical debt from appearing on credit reports (81%).

The study found that 3 in 4 voters (75%) would be more likely to vote for state officials who passed such laws.

"This is a common ground issue between Democrats and Republicans," said a Florida survey respondent. "Everybody's frustrated with the system, and everybody wants costs to be lower."

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