Why Are People with Health Insurance Going Bankrupt?

[DallasNE]

19. Underinsurance Is Exactly Where We Are At

The way the insurance rules work means most of the costs are borne by the insured. It usually takes about $5,000 in out of pocket before a $1,500 deductible can be reached. The primary benefit of insurance is the negotiated reduction in what the provider may charge. Without insurance a procedure may cost $3,000 but the insurance plan knocks that down to $1,750 so that helps a lot but it is dishonest for the providers to try and rip people off with the higher charge in the first place.

Bottom line, the only way to get around the problem of underinsurance is with single payer, along the lines of Medicare for seniors, but first people need to be better educated in what the true issues are and how much they overpay for the coverage they have.