Harvard: Medical bills trigger half of bankruptcies. Most filers had insurance

[woo me with science]

http://www.msnbc.msn.com/id/6895896/#.T0Hl85jwwTA

Medical bills make up half of bankruptcies
Study finds most bankruptcy filers had health insurance
updated

BOSTON — Costly illnesses trigger about half of all personal bankruptcies, and most of those who go bankrupt because of medical problems have health insurance, according to findings from a Harvard University study to be released Wednesday.
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Researchers from Harvard’s law and medical schools said the findings underscore the inadequacy of many private insurance plans that offer worst-case catastrophic coverage, but little financial security for less severe illnesses.

“Unless you’re Bill Gates, you’re just one serious illness away from bankruptcy,” said Dr. David Himmelstein, the study’s lead author and an associate professor of medicine. “Most of the medically bankrupt were average Americans who happened to get sick.”
....

“Medical coverage is becoming more for catastrophic loss than for intermediate expenses,” Morris said.

[Scuba]

1. Another indictment of our shameful, for-profit system, where wealthy corporate "world citizens"...

... make money off the misery of Americans.

[WCGreen]

2. Yep...

I had a stay in the hospital back in 2004 that ended up with a billing of over $ 400,000. We had great coverage and medicare as a secondary so that we only had to shell out about $11,000 out of pocket, most of that was from the emergency room and the "exotic" drugs they had to employ on me.

It took us two years and we paid it down but it was tough.

Last year, with no time in the hospital, we paid out of pocket $5,241, mostly on co pays for scripts.

I live on SSI which I get about $7,000 per year, Mrs WCGreen nets out about $2,000 per month after retirement and benifits are deducted. I make about $300 per month on average for doing tax returns and we do get some help from friends and relatives when we need it.

Medical eats up about 10% of our net income. The only other expenses that hit that high are Mortgage and food.

[woo me with science]

15. The numbers are just obscene.

And I know your story is repeated millions of times across this country. Someone here had a *two-hour* ER visit recently that came to over 2000 dollars despite no scans or significant intervention other than fluids and a pain pill.

Thanks for your post.

[RB TexLa]

3. And we could use Medicare/Medicaid payout cuts to lower costs from doctors and facilities

but everyone screams that you can't do that to the poor doctors and facilities, that they deserve that money. It's always made into an attack on a certian demographic by the medical industry and people fall for it.

[SammyWinstonJack]

4. USA! USA! USA!

WE'RE NUMBER ONE!

[xchrom]

5. Du rec. Nt

[JoeyT]

6. Well at least we did something about that.

Thanks to the mandates all of the people going bankrupt due to medical bills will have had insurance.
Go us.

[Yo_Mama]

7. Right, and if they get sick they are expected to pay 20-30% out of pocket, so

I would assume that medical bankruptcies will rise in the US. Also the health of people with chronic conditions is declining because more and more people can't afford the copays and drug costs again, which is going to raise longer term medical costs.

With the last HHS ruling on what is to be covered (basically leaves it to the states), it is clear that the current situation will not be changed in 2014. It's going to be more of the same with even higher copays for many insured people.

Now we just have to ensure that we make bankruptcy more affordable; that should be a democratic plank. We have to reverse most of the 2005 "reform".

[woo me with science]

12. There was a lot of talk when this passed about "fixing it later."

Funny how that never actually happens.

This was a planned gift to the corporations from the outset.

[mick063]

8. Elizabeth explains it best.

[Comrade Grumpy]

9. The health insurance industry is a parasite. Civilized countries have national health care.

Some things should not be a for profit business, such as health care, prisons, and the military.

[woo me with science]

13. +1

[Agony]

18. +1 ...simply and powerfully put...

Hi C. Grumpy!

[shcrane71]

25. Americans can always go to prison to get healthcare. *sarcasm* n/t

[theaocp]

10. As Michael Moore noted in SiCKO,

it's not about those WITHOUT insurance, but about those WITH insurance. It takes some critical thinking, but the conclusions are inescapable. Thanks, WMWS.

[woo me with science]

14. You make an excellent point.

Numbers insured does not reflect the number who can actually afford and access health care. It's like bragging about troop withdrawals without looking at the overall military budget and the ramping up of the Military Industrial Complex in other areas.

Thank you.

[pecwae]

11. Recced.

I'm heartened to see the issue of the insured being addressed. That is not to dismiss the uninsured at all, but to bring light to the fact that those of us who pay a huge premium and high deductibles can still have medical debt.

Hospitals routinely pad their bills to obscene levels. I just found a charge that was marked up 44,808% higher than what I could buy the same item for online. It'd be cheaper if the surgeon could just tell us what he'd need for a scheduled procedure, let us buy it retail and bring it to the hospital the day of surgery.

[fascisthunter]

16. but but but... if we help each other get universal healthcare we will be commies!

Right wingers told me sooo... it's much better to screw yourself by paying a middleman to screw you out of healthcare. Not so conservative are they... I guess they believe in overpaying.

[Brigid]

17. Yep, this has been true for years now.

Great system (?) we have here.

[Agony]

19. OK... now what?

[Gregorian]

20. Civilized. Isn't that the goal of having a society? A government?

Like an economist once said, we're supposed to be getting the benefits of a group purchase. But instead we're paying individually. So we aren't civilized.

I remember Freedom Fries. If the mere mention of one of the only true civilized countries on earth is shunned, then god help us with the bigger things, like health care.

[lovuian]

21. this is reality and the system can't continue

It will implode because they will be only Bill gates who can get treatment

[surrealAmerican]

22. k & r

[Bonobo]

23. THIS is what I and others resent when we talk about taxes

To pay taxes that go to the military industry when our basic health and dental needs are not met and we are thrown like meat into the clutches of the private insurance companies that will take any opening to cheat out of paying or drain the last bit of money from our wallets --that is what kills some of us.

They have no incentive to take care of our health.

Only a government health plan could possibly claim to be incentivized to take care of our health since the health of the citizens is directly related to the health of a country.

[shcrane71]

26. Totally Agree! The disconnect with the American population on this issue astounds me.

I've purchased raffle tickets from a co-worker who was raising money for her uncle to get a wheelchair. When I said that it's a travesty that Americans need to have raffle tickets to cover health care costs, the same person said that she didn't want Obamacare as it was socialism.

[csziggy]

24. And MOST of can't fire our health insurance company despite what Mitt says

If we get our insurance through our (or a family member's) employment, we have few choices about what we get.

My husband's company picked Cigna for the last two years. NONE of our previously used doctors or medical services are in network for Cigna. Even if we made the choice for the better coverage, we'd still have to pay 30% out of pocket and a $2000 deductible. At least that "saves" us over $200 per month in increased premiums, but what it means is that we have to negotiate with our doctors, the labs, therapists and other medical services to try to get them to accept what the insurance will pay.

We have a yearly maximum out of pocket of $10500 but that does not include whatever the doctor and other services require that we pay above what the insurance will pay. Since I expect to hit that yearly maximum this year (I need replacement of both knees - confirmed today) I hope I can make good deals with the doctor and other medical professionals. But I won't know how much out of pocket it will be until it is all over and the bills stop arriving.

This system is good for no one except the insurance companies.

[progressoid]

27. Well, it's a darn good thing we fixed that problem by making sure people are...umm...insured.

[Bozita]

28. Thom Hartmann interviewed a major Dutch pol who NEVER heard of such a thing

NO fucking personal bankruptcies due to medical costs there.

It was a few years ago, but I assume it's still true.

[eridani]

29. Before Romneycare in MA, 59% of bankruptcies were due to health care expenses

Dropping to 50% is a decrease at least. Unfortunately, MA is the model for the 2010 health care reform, so expect to see a slight decrease to a still wholly unacceptable number.

[HeiressofBickworth]

30. Back in the 70's

I worked as a bankruptcy paralegal. Even back then, the majority of my clients were in bankruptcy due to medical bills -- and they all had insurance. I remember one guy, owed doctors and hospitals over $100,000 AFTER insurance paid their piddly amount. He wound up with nothing. And his wife died anyway. It's a travesty that people have to go bankrupt to have health care. And for people without insurance, there isn't even the opportunity to GET health care. Don't give me the crap about going to an emergency room. They don't do long-term care like cancer treatment or kidney dialysis. And they bill you and sic the nasty bill collectors on you. What a system we have -- NOT.

[Vinca]

32. I'm afraid "Obamacare" won't change this much.

After getting into the pre-existing condition pool and having surgery, I was surprised by the number of things that were uncovered. Maybe that was the point I was supposed to grovel to the providers and beg for a break, but I actually felt the amount they agreed to pay the surgeon was about 50% of what he deserved to get for the procedure so I didn't complain when I got a bill from his office and set up a payment plan. (Let me add, before I get slammed, I am very, very grateful for the coverage available. The treatment gave me my life back. I'm just saying it's not going to solve the bankruptcy problem.)

[mdmc]

34. ..

[abelenkpe]

33. That article is from 2/2/2005

Is it any better now?

[woo me with science]

35. Kick. nt