The "Hidden Tax" of the Uninsured

Universal health care won’t just benefit the uninsured. Insured Americans can expect lower prices as coverage is expanded because they will no longer have to pay for the uncompensated care given to those without insurance.

The Baltimore Sun has a story focusing on Mercy Medical Center which in 2010 administered $40 million in uncompensated care to those without insurance or with high, unaffordable deductibles. In order to stay in business, the hospital must pass these costs on to insured patients in the form of higher prices.

This trend has doubled over the past 30 years as uncompensated care as a percentage of hospital revenues has increased from 4% in 1977 to 8% in 2007 according the Maryland Hospital Association.

The good news is that health care reform has already begun to help. In Maryland, state lawmakers have begun expanding coverage through Medicaid in anticipation of deadlines set by the Affordable Care Act. Hospital officials say that this has helped to mitigate their losses during the recession.

-- Baltimore Sun