April 28, 2022
New research finds crowdfunding for medical bills is inequitable, not much of a safety net
A recent study conducted by Nora Kenwothy, an associate professor of nursing and health studies at University of Washington Bothell, and a team of UW researchers determined that despite popular belief, people in states with higher medical debt and lower insurance coverage rates are less likely to be successful through methods of medical crowdfunding.
The team assessed more than 437,000 GoFundMe campaigns, specific to medical issues, over a five-year period, analyzing the number of campaigns started and amount of money raised across a range of income, medical debt and health insurance coverage levels. They also used demographic and location information to conclude that despite the greater number of campaigns in low-income and under-insured communities, wealthier communities are consistently raising substantially more money through crowdfunding.
The researchers found that unfunded campaigns are often removed from the site after a year, with the length of time campaigns remain on GoFundMe increased by the success of the campaign, both of which give the impression that campaigns are more successful that then reality. They concluded that increased transparency from all crowdfunding companies, along with greater research and policymaking are necessary for addressing the actual needs crowdfunding seeks to address. Ultimately, the team underscored the need for better health insurance coverage and social assistance programs as a more equitable solution to these issues than crowdfunding alone.