The American Health-Care System Increases Income Inequality

The disrepair of the American healthcare system is often shocking to others in other parts of the world. It is expensive and confusing, and now there is evidence that it is so bad that it measurably raises inequality in the US. A new study suggests that household health care spending is actually a significant contributor to increasing income inequality. This study also "indicates that medical expenses push millions of Americans below the federal poverty line, including 7 million people who make more than 150 percent of the poverty level. Four million of those Americans are pushed into the ranks of extreme poverty."

Even the Affordable Care Act, or Obamacare, as it is colloquially known, exacerbated some effects while providing much needed support in other areas. For example, while it reduced the numbers of people going into bankruptcy over medical expenses, it also increased deductibles (the amount of money that must be paid before an insurance company will pay a claim) to lowering premiums. "Even as Americans are better protected from the worst consequences of catastrophic illness, routine care continues to hurt low-income people’s finances. The ACA isn’t really designed to combat that particular paradox." But it is clear that Republican plans are likely to make things worse for the majority of Americans by increasing deductibles and premiums. 

When a single doctor's visit can cost families piles upon piles of charges, it is no wonder that many deplete savings or go into debt just for basic primary care. Others just go without care at all. This article is an illustration of just how complicated health care in the US can be, and just how damaging it is to not only the impoverished or the working class, but even to middle class families.