Underinsurance in America

Abstract

On any given day, an estimated 35 million Americans are without health insurance.¹ In addition, at least 20 million people have insurance that could prove inadequate in the event of serious illness.² Coverage by insurance policies that require large out-of-pocket payments has been termed "underinsurance."Lack of Coverage for Catastrophic Medical ExpensesAccording to the 1990 report of the Pepper Commission,a commonly accepted measure of inadequate coverage is health insurance that leaves the person covered at risk of spending more than 10 percent of income on health care in the event of a costly illness. An estimated 13 percent . . .