Hospitalized traumatic injury patients in the United States face sharp increases in medical debt and bankruptcy despite having health coverage, according to a study from the University of Washington Medicine.
Researchers found that while public insurance programs like Medicaid provide a safety net, private insurance often leaves patients financially vulnerable after a medical emergency.
The study analyzed data from more than 12,000 patients hospitalized in Michigan for injuries ranging from car crashes to assaults. It reveals that 18 months after hospitalization, the proportion of patients with medical debt in collections jumped by 24%, while average medical debt per patient rose by 76%, or approximately $290.
Dr. John W. Scott, a trauma surgeon at Harborview Medical Center and associate professor of surgery at the University of Washington School of Medicine, served as the paper’s senior author. He noted that traumatic injuries like car crashes or falls are unpredictable events that can happen to anyone.
“What do we have health insurance for? If your car gets T-boned or you step into the street and get hit by a bus, you shouldn’t go bankrupt,” Scott said. “But we saw that people who faced a medical emergency they did not choose and could not prevent were often financially devastated.”
These medical emergencies often require expensive surgery, intensive care and lengthy rehabilitation, leading to bills that can reach tens of thousands of dollars. The financial strain is often compounded because many patients are unable to quickly return to work following their injury.
Deductibles for these plans frequently range from $1,700 to $2,500 annually. Scott described these financial consequences as a distinct issue within the United States.
“This is a uniquely American problem,” Scott said. “People get injured all over the world, but in other high‑income countries they almost never end up in medical debt or file for bankruptcy because of those injuries.”
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