Out of Pocket Expenses

Individuals and families across America suffer from exorbitant out-of-pocket expenses. Having inadequate health coverage can contribute greatly to high out-of-pocket expenses. Inadequate coverage even for those with insurance – in the form of high deductibles, high copayments, and benefit restrictions – can play a major role in making health care unaffordable for them.

High out of pocket expenses have a particularly devastating effect on low-and middle-income households. This financial difficulty can then contribute to making poor health care decisions and even avoid needed health care.

Many who suffer from chronic or preexisting conditions face an even higher out-of-pocket cost if the condition is excluded from insurance coverage or if the condition is classified as preexisting.

Under health insurance reform, the amount that families pay out of their own pocket will be capped through annual out-of-pocket limits. In addition, families will also no longer face annual or lifetime limits to their benefits, nor will coverage be denied based on medical history.

Sources: Healthreform.gov