PHOTO BY CHUCK HOVENTuesday, July 11, 2023; Lincoln Park, 1200 Starkweather Avenue in the Tremont neighborhood: Care Alliance Health Center President and Chief Executive Officer Dr. Claude Jones accepts a $100,000 Aflac CareGrant. The Aflac CareGrants are awarded by Aflac, an insurance company, to support organizations that are helping to close the gap around medical debt.

PHOTO BY CHUCK HOVEN

Tuesday, July 11, 2023; Lincoln Park, 1200 Starkweather Avenue in the Tremont neighborhood: Director of Public Health for the City of Cleveland Dr. David Margolius thanks Aflac for their contributions toward a healthier Cleveland. Aflac donated $100,000 to Care Alliance Health Center and installed a commemorative park bench in Lincoln Park in the Tremont neighborhood.

On July 11^th at Lincoln Park in the Tremont neighborhood Aflac insurance company awarded a $100,000 CareGrant to Care Alliance Health Center of Cleveland and installed a commemorative park bench in Lincoln Park.

     The grant to Care Alliance Health Center will support its mission of “making healthcare more accessible to underserved communities” said a statement issued by Aflac. The insurance company said, “The Aflac CareGrant comes out of Aflac’s commitment to supporting organizations that are helping to close the gap for individuals and communities currently suffering from or highly exposed to medical debt.”

     Aflac commissioned a national survey to examine Americans’ awareness of and exposure to medical debt. The survey revealed that Ohio was among eleven states where the number of people with health insurance that had savings less than or equivalent to their out-of-pocket maximum was above the national average. In Ohio 68% of survey respondents fell into that financial state of being unprepared for medical debt. The national average was 63% of respondents being unprepared for medical debt.

     A crowd made up largely of staff from Care Alliance Health Center and Aflac witnessed the ceremony. Speakers included Aflac President Virgil Miller, Care Alliance Health Center President and Chief Executive Officer Dr. Claude Jones, and City of Cleveland Director of Public Health Dr. David Margolius.

     Aflac President Miller said many Americans are a diagnosis away from financial risk. He said medical debt is high due to the high cost of health care and that “health insurance was never designed to cover all the expenses related to a medical claim.”

     To help address the financial stress caused by high medical debt, Miller said Aflac has committed $1 million dollars a year to Aflac CareGrants to “help individuals and organizations deal with medical debt.”

     In addition to the CareGrants, Aflac installs park benches in communities where it gives the grants. Miller said the idea for the park benches came from an Aflac ad which featured two people on a park bench discussing medical debt. The commemorative bench, now anchored firmly in Lincoln Park, is painted a light blue color and Aflac hopes it will serve as “a natural space of rest, reflection, peace and comfort for the Cleveland community.”

     Care Alliance Health Center President and Chief Executive Officer Dr. Claude Jones accepted the $100,000 CareGrant from Aflac and shared information about Care Alliance’s role in the community. Jones said about 11,000 individuals receive care they need each year from Care Alliance. He said without Care Alliance “many would have difficulty receiving care.” He noted that Care Alliance serves about 2,500 individuals yearly who are homeless. Dr. Jones said the grant from Aflac would help Care Alliance with a planned expansion, the creation of a new health center at 7300 St. Clair Avenue.

     City of Cleveland Director of Public Health Dr. David Margolius helped to cut the ribbon for the dedication of Lincoln Park’s new bench. He thanked Aflac for the donation of the bench and for the grant to Care Alliance which he called a “world class organization.”

     When asked if he knew of any statistics on how many Clevelanders had lost their homes due to health care debt, Care Alliance’s Dr. Jones said he didn’t know of any existing data on the subject. He expressed interest in the subject, and said losing your home would definitely be considered a “social determinate” contributing to your overall health outcomes.

     Director of Public Health Margolius said it would be difficult to isolate medical debt from other debt to determine its impact on people losing their homes. He said, “Medical debt is a big problem. The health care system is messed up.”

     The Aflac Care Index survey show some of the problems insured Americans will potentially face if they receive a medical diagnosis resulting in huge medical expenses. The survey notes that “46% of insured Americans don’t have enough in savings to pay for medical expenses not covered by their health insurance.”

     The summary of the Aflac Care Index cites August 2022 US medical bankruptcy statistics published by RetireGuide which document that, “In America, medical bills are the most common reason for bankruptcy.”

     Data from the United States Census Bureau cited by the study indicates that “more than 91% of Americans reported having health insurance in 2020, but still 30% are in medical debt.”

     The study takes a close look at states with high potential vulnerability to medical debt crises. In Ohio the study says: “29% of people have no retirement savings, college education account, savings account, stocks/bonds, or investment real estate property. 31% have no rainy-day fund, while 20% have $1,000 or less. 29% of respondents report incomes less than $29,000, and 23% are currently unemployed. 27% have had a parent or grandparent suffer from a stroke. 52% have stayed in the hospital overnight. 55% have visited an emergency room or department.”

     Aflac urges Americans to learn about what their health care insurance will cover and how much they will potentially have to pay out of pocket. The study notes that “83% of respondents in the Aflac Care Index survey incorrectly believe they have enough health insurance to protect themselves from medical debt.”

     The study urges Americans to make use of financial education resources, such as the United States Federal Deposit Insurance Corporation’s Money Smart financial education program, The American Savings Initiative, and the U.S. Consumer Financial Protection Bureau, to help them plan for their financial future.

     The study summary report also urges Americans to prioritize preventive care and invest in supplemental health insurance.