Covering The Uninsured In 2008: Current Costs, Sources Of Payment, And Incremental Costs

TLDR

The cost of covering the uninsured is not simply the cost of a specific plan and may differ from government costs depending on financing structures and crowd‑out effects. Uninsured individuals spent $30 billion out of pocket and received $56 billion in uncompensated care, with government covering 75 % of that; full coverage would raise national health spending by $122.6 billion, about 5 % of current health expenditures and 0.8 % of GDP.

Abstract

People uninsured for any part of 2008 spend about $30 billion out of pocket and receive approximately $56 billion in uncompensated care while uninsured. Government programs finance about 75 percent of uncompensated care. If all uninsured people were fully covered, their medical spending would increase by $122.6 billion. The increase represents 5 percent of current national health spending and 0.8 percent of gross domestic product. However, it is neither the cost of a specific plan nor necessarily the same as the government's costs, which could be higher, depending on plans' financing structures and the extent of crowd-out.