In 2001, 1.458 million American families filed for bankruptcy. About half of
debtors cited medical causes,... Among individuals whose illness led to
bankruptcy, out-of-pocket costs averaged $11,854 since the start of illness;
75.7% had insurance at the onset of illness. Medical debtors were 42% more
likely than other debtors to experience lapses in medical coverage. Even middle class,
insured families often fall prey to financial catastrophe when sick.
The average debtor was a 41 year old woman with children, and at least some
college education. Most debtors owned homes; their occupational prestige scores
place them predominantly in the middle or working classes.
Medical debt was also associated with mortgage problems.
Medical debtors reported particular problems paying mortgages/rent and
utilities (Exhibit 4). Although our interviews occurred soon after the
bankruptcy filings (7
months, on average) many debtors had already been turned down for jobs (3.1% of
debtors),
mortgages (5.8%), apartment rentals (4.9%) or car loans (9.3%) because of the
bankruptcy on
their credit reports.
Illness begot financial problems both directly - due to medical costs - and
through lost
income. 59.9% of families bankrupted by medical problems indicated that medical
bills (i.e. from
medical providers) contributed to bankruptcy; 47.6% cited drug costs; 35.3% had
curtailed
employment due to illness - often (52.8%) to care for someone else. Many
families had problems
with both medical bills and income loss. Click on link for
Disability and
Supplemental plans
Families bankrupted by medical problems cited varied, and sometimes multiple,
diagnoses. Cardiovascular disorders were reported by 26.6%;
trauma/orthopedic/back problems
by nearly one-third; and cancer, diabetes, pulmonary or mental disorders, and
childbirth-related
and congenital disorders by about 10% each. 51.7% of the medical problems
involved ongoing
chronic illnesses.
The co-occurrence of medical and job problems was a common theme. For instance
one
debtor underwent lung surgery and suffered a heart attack. Both hospitalizations
were covered
by his
employer-paid insurance, but he was unable to return to his
physically-demanding job. He
found new employment, but was denied coverage due to his
pre-existing conditions
(I don't think this is correct click and view our COBRA
page - Also see our Pre-X page and
check out the guarantees on
Employer Provided coverage.
which
required costly ongoing care. Similarly, a school-teacher who suffered a heart
attack was unable
to return to work for many months, and hence her coverage lapsed. A hospital
wrote off her
$20,000 debt, but she was nonetheless bankrupted by doctor bills and the
cost of
medications.
even brief lapses in insurance coverage may be ruinous and should not be viewed
as
benign.
Steve's Note - This would be a reason to have your premiums paid
AUTOMATICALLY from your checking account or credit card
automatic
payments
even good employment-based coverage sometimes fails to protect families
because
illness may lead to job loss and the consequent loss of coverage.
Check COBRA,
Cal COBRA 36 Months, HIPAA,
Temporary Plans and of course Private Coverage
Lost jobs, of
course, also leave
families without health coverage when they are at their financially most
vulnerable.
View entire articlePNHP Study
Summary page - I don't agree with them though
Five Mistakes that Will Land You in Medical Debt, written by Elizabeth Cohen, CNN's Medical News correspondent. Highlights of the story include:
Furthermore, Cohen highlights the FHCE's tools and services eligibility quiz, state-by-state guide of health care choices and 24-hour helpline as resources to those who currently do not have insurance. To take advantage of our online tools and services we provide, please visit our Web site, www.Coverage For All.org. It is a rich and educational resource designed for consumers, agents and organizations alike.
Illness often leads to financial catastrophe through loss
of income, as well as high medical bills. Hence, disability insurance and paid
sick leave are also critical to financial survival of a serious illness.
WebMD on Medical Bankruptcy
MR. MIP - GUARANTEED
for Individuals & Families!
Medi - Cal
Programs for the Uninsured
