Tom Murphy
RedwoodAge.com

Nearly two out of three American adults of working age struggle to meet medical bills or don't have enough health insurance - if they have any at all, according to a study by a nonprofit foundation.

The Commonwealth Fund reported 72 million people - 41 percent of working-age adults - had medical debts or had problems paying medical bills last year. That represents a jump from 58 million people, or 34 percent, just two years earlier.

"This increase occurred across all income groups, but families with low and moderate incomes were particularly hard hit," the fund reported. "More than half of adults with incomes under $40,000 reported problems with their medical bills in 2007. Underinsured adults or those with gaps in their health insurance reported the highest rates."

The findings came as another group, the Kaiser Family Foundation, reported a second study showing older Americans are also struggling, often forgoing their medications because of costs. The Kaiser study found 15 percent of the 3.4 million caught in the so-called "donut hole" of the Medicare drug program had stopped taking their medicines. That's about 510,000 people. 

The donut hole is a gap in coverage in the federal drug plan that was added intentionally to cut down on program costs. The program covers initial drug costs, but then stops - forcing recipients to spend the next $3,850 out of their own pockets - before it kicks in again. Seniors hitting that gap often don't have the cash to cover drugs for such conditions as high blood pressure, diabetes or heart ailments, the foundation said.

Stunning Data
The Commonwealth study focused on adults under 65, reporting stunning figures on how health costs are affecting American budgets. For example, it said:

• One-third of adults spent 10 percent or more of their income on health insurance and health care, up from 21 percent in 2001;
• About 50 million people were uninsured for some time during 2007;
• Families with incomes under $20,000 report the highest uninsured rates: half went without insurance for a time during 2007;
• More than 70 percent of adults with gaps in their health insurance coverage reported not getting needed health care because of cost, up from just over half in 2001.

"Health insurance is often unaffordable or unavailable, health care costs claim a growing share of household budgets, and rising numbers of people are underinsured," the study said. "With working families in crisis from a combination of faltering job and income security and a dramatic acceleration in the cost of basic life necessities, the time has never been more urgent for policymakers to forge ahead on solutions to the nations' worsening health insurance problem."