COVERAGE: Myths About the Individual Mandate: Societal Costs of the Uninsured

Myth: If individuals choose to be uninsured, there are no consequences to society.

Fact: The uninsured increase the price of premiums for the insured and drive uncompensated care costs that taxpayers and health care providers must absorb. They place undue strain on Emergency Departments and other sources of care that impact all of us.

• In 2004, the cost of uncompensated care for uninsured Americans approached $41 billion.
• Uncompensated care results in a "hidden tax" on the insured, who are forced to pay $700 to $1,300 more in annual premiums to pay for the care recieved by the uninsured.
• The burden of the uninsured creates a vicious cycle of cost-shifting, inextricably linking the issues of cost and coverage
• Our emergency departments are feeling the strain of uncompensated care. Between 1993 and 2003, 425 U.S. emergency departments closed their doors. Between 1997 and 2004 median waiting times have increased by 36 percent.

Check back tomorrow when we'll examine common myths about mandates and affordability. For more in depth discussion, read New America's recent issue brief.