Low Cost Health Insurance Policy .com

If you want to thicken the air in any given room these days, bring up the subject of national health care reform. Opinions and emotions are guaranteed to fuel a heated conversation while at the same time some key issues are often left out of the informal debate. It is hard to blame participants for these oversights because of the subject’s extreme complexity. But the bottom line remains that this is a subject our country needs to intelligently tackle before it bankrupts us.

In fact, many individual Americans have already been bankrupted through devastating encounters with our current health care system. This past summer, the respected American Journal of Medicine released new study findings that revealed some staggering statistics that reveal the role that medical expenses play in personal bankruptcy filings. Working to reduce the margin of error in their findings, the authors applied a stringency to the study that made it a first of its kind: a truly random sample of bankruptcy filers nationwide, followed up with detailed personal interviews of participants. Medical causes of bankruptcy were defined to include medical bills and loss of income due to health issues. In conclusion, they discovered that more than 60% of personal bankruptcy filings in 2007 had significant medically related expenses that pushed individuals and families over the financial edge to file for bankruptcy.

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.

It is hard to fathom the aggressive rise in medical costs and their burden on families in the past 30 years. 1981 statistics indicate that only 8% of personal bankruptcy filings were in the aftermath of medical crisis. (These numbers were extracted from court records which did not indicate the origin of debt handled by collection agencies.) In 2001 findings, the number of medically related bankruptcies had jumped to 46%. In the short gap of 6 years, the American Journal of Medicine’s findings for 2007 rose to nearly 62%. What the numbers will be after the effects of the current economic recession are tallied gives reason for pause.

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.