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05/08/2024 | News release | Distributed by Public on 05/08/2024 23:46

The Senate’s Urgent Call: Addressing the Medical Debt Crisis

August 5, 2024

The Senate's Urgent Call: Addressing the Medical Debt Crisis

Recently, the U.S. Senate Committee on Health, Education, Labor, and Pensions (HELP) held a critical hearing to confront the growing medical debt crisis in America It's not really news to most that our healthcare system is, well, a mess. But the HELP hearing laid out just how deep our nation's medica debt crisis goes and what we can do about it.

The Shocking State of U.S. Healthcare

True to form, Senator Bernie Sanders didn't pull any punches and began the hearing with a blunt truth: America's healthcare system is a dangerous outlier. The U.S. spends nearly twice as much per person on healthcare as other industrialized countries, yet our outcomes are often worse. Yes, you read that right: Our life expectancy is lower despite spending far more as a country.

In addition, healthcare-induced financial ruin is shockingly common. A few unfortunate stats to chew on: 66% of personal bankruptcies in the U.S. are tied to medical debt. 40% of adults currently have healthcare-related debt, with 12% owing $10,000 or more. Altogether, Americans are burdened with $220 billion in medical debt. These debts are not from living lavishly; it's from the basic need to get medical treatment. This problem is uniquely American, and it's time to change that.

I asked the panelists at the HELP committee hearing on the medical debt crisis what they thought the function of a humane health care system should be.

Listen to what they had to say: pic.twitter.com/hbdxxmZilT

- Bernie Sanders (@SenSanders) July 18, 2024

Stories from the Frontlines

And while there were plenty of harrowing statistics shared, the hearing wasn't all numbers as witnesses brought the crisis to life with their powerful stories.

Dr. Luke Messac and Dr. Fumiko Chino, both on the frontlines of healthcare, shared heart-wrenching tales of patients delaying or skipping treatment because they feared the bills.

Likewise, Allyson Ward, a neonatal nurse practitioner, shared her family's struggle. After the birth of her premature twins, the medical bills piled up, creating a financial burden that seemed insurmountable. Her story is one of many that highlight the broader impact of our broken health care system on American families who must unfortunately choose between health and financial stability.

Systemic Failures and the Need for Reform

Several witnesses repeatedly brought the main point home, pointing out that our nation's healthcare policies are clearly failing us. The hearing also highlighted lesser-known issues like the misuse of the 340B drug pricing program, which is supposed to help low-income patients, but often ends up benefiting large hospital systems instead. The consensus of these witnesses' testimony was clear: we need systemic reforms to ensure healthcare equity and affordability.

And among the many reforms mentioned during the hearing, one deserves special attention: the need for a universal healthcare system like Medicare for All.

A Medicare for All system would eliminate the source of medical debt by ensuring that every person in the United States has guaranteed access to the care they need. This system would cover all necessary medical services, including doctor visits, hospital stays, preventive care, and prescription medications, without out-of-pocket expenses that currently plague so many families. Furthermore, it would streamline administrative processes, reducing the bureaucratic burden on providers and patients alike, ensuring that more healthcare dollars are spent directly on patient care. Sounds like a good deal to us!

This fundamental shift towards a single-payer, Medicare for All system would not only provide financial security for millions but also ensure equitable access to high-quality healthcare for all, making the concept of medical debt a thing of the past.

And that's a future we at Public Citizen will continue fighting for. Join the fight!