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| Personal Bankruptcy and Health Care Reform |
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| Written by Meg Brown |
| Friday, 02 October 2009 09:26 |
 Bankruptcy is in fact what a growing number of Americans have already encountered through the health care system as it now functions. In June of this year, the American Journal of Medicine released a new study's findings based on figures available from 2007. The results of this study point out the debilitating role of medical expenses in families and individuals who must file for personal bankruptcy. Labeled as the "first-ever national random sample of bankruptcy filers", the study's authors worked hard to maintain conservative controls on their findings and followed the numbers up with fact-finding interviews with a significant portion of the sample's participants. Research indicated that a staggering 62% of personal bankruptcy filings were disproportionately driven by medically related expenses. Dr. Steffie Woolhandler, one of the study's authors, voiced her conclusions in an interview with CNN saying, "Unless you're a Warren Buffett or Bill Gates, you 're one illness away from financial ruin in this country If an illness is long enough and expensive enough, private insurance offers very little protection against medical bankruptcy, and that's the major finding in our study." There are those who find Dr. Woolhandler's words a little radical. A spokesman for the Washington, D.C. based nonpartisan policy research foundation, The Center for Studying Health System Change, admitted some reservations about the findings but at the same time concluded that 1 in 5 American families are "unduly strained" by medical bills. In 1981, only 8% of families filing for bankruptcy claimed to have done so in the wake of a major medical crisis. (The accuracy of that figure is somewhat debatable since court records do not indicate the origin of debt that is handled by collection agencies, possibly obscuring debt generated by doctor or hospital bills.) In 2001, a major study concluded that over 46% of personal bankruptcies were medically related. The American Journal of Medicine study's most recent conclusions of 61% used data from 2007, indicating an alarming trend and numbers which interestingly predate the fallout of our economy's current recession. The popularly held mental picture of the average personal bankruptcy filer as a shiftless individual is completely dispelled by the AJM study. In this nationwide random sample, the majority of debtors were middle aged, middle class and college educated. The majority, 75%, had medical insurance policies when their debt and health problems started. Their insurance had the industry's standard gaps of copayments, high deductibles and services that were not covered. Nationally, 50% of insurance companies rescind individuals' policies within one year of being diagnosed with a disabling condition and many are immediate cancellations. It is hard to ignore that the middle class' back is being gradually broken under the weight of the current insurance system. Health insurance premiums skyrocket every six months and deductibles on most policies follow a similar skyward pattern annually. Proponents of the American Dream have traditionally contended that what is bad for the middle class is bad for the nation as a whole. Currently, it is estimated that the U.S. will spend 17.6% of its GDP (Gross Domestic Product) on health care in 2009. The future holds an ever upward spiral if reforms are not soon brought into play. A further consideration of this staggering GDP statistic is to realize that it does not and cannot take into account all the associated costs that medically related bankruptcy of individuals or small businesses impose on the economy and society. Responsible citizens owe it to themselves to review this American Journal of Medicine study in its entirety and to engage in further health care reform fact finding. A brief online search at amjmed.com (Vol.122, Issue 8, pp. 741 to 746) will get you started. Let your opinions be fully informed and get in touch with your elected representatives. This is an important national subject that requires vision and a patriotic, nonpartisan commitment to our future. About the Author: Meg Brown is a writer and social activist who follows developments in bankruptcy and usury laws.She is grateful for the help of her trusted consultant, an knowledgeable bankruptcy attorney and suggests that readers inform themselves of their legal rights and avenues at Insights from a Charleston SC Bankruptcy Attorney. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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