A new study released earlier this month revealed that 60% of bankruptcies are filed due to overwhelming medical bills.  What’s incredible is that of those bankruptcies 75% of the filers have health insurance!  This revelation speaks volumes to those who insist the insurance industry needs no overhaul.   Harvard Law School, Harvard Medical School and Ohio University participated in this report and the results were published in the American Journal of Medicine.  Dr. David Himmelstein, an advocate of a U.S. insurance overhaul and a member of the Harvard Medical School staff says that those of us without a bank account to rival Warren Buffet are only “a serious illness away from bankruptcy”.  He goes so far to say that health insurance offers little, if any, protection for middle-class America.

Other findings in this study include:

• The proposals that are now being considered by the Obama White House will not likely help a vast majority of Americans.
• Expanding private insurance won’t prevent financial catastrophe for hundreds of thousands of Americans.
• Of the 170 million Americans who have health insurance through their employers, many will find themselves with none by year’s end due to employers cutting their own costs.
• 25% of all insurance companies cancel coverage immediately after a disabling illness occurs and is filed, another 25% do so within the twelve months following the claim.

No one is immune from bankruptcy, either.  The study found that most were educated, owned their homes and had successful careers.  Further, the numbers reflect a 50% increase from bankruptcies filed in 2001. 

For many who were asked to pay thousands of dollars after the insurance paid, such as those with injuries or who were diagnosed with Diabetes or other illnesses, the payments were just too much.  Many hospitals and physicians asked patients to make payments that rivaled their automobile or in some instances, those that surpassed even the patient’s mortgage payments.

President Obama continues to work on solutions to the ever-deepening concerns and fears for health care in this country.  Until these problems are met head on and with a consistent solution across the board that will address insurance, bankruptcies and job losses, these numbers won’t be declining.

If the insurance industry agrees to stop charging higher premiums to people who have serious medical problems, after having denied for years that it’s actually doing that, does this equate to a confession?  Either way, the industry has agreed to stop this practice….if every American purchases health insurance.  In an ideal world, this is a win-win.  Ah, but since when do we live in an ideal world?  Besides, the insurance companies have an ulterior motive.  They’re concerned the liberals will finally get support behind their long-fought-for government insurance program.  So basically, they’re saying if every uninsured American, all 48 million of them, are forced to purchase medical insurance, then they’ll stop tightening the screws to those most ill and most in need of medical care.  It almost sounds as though they’re holding those most vulnerable hostage and the ransom note directing exactly what their terms are.

It’s no secret many insurance companies have been playing fast and loose with many.  One who tries to purchase medical insurance and who has a serious medical insurance isn’t declined, but the monthly premiums they must pay rival a pair of Jimmy Choo boots.  This only leads to even more who find themselves with no medical insurance.

As part of the proposal, the insurance companies conveniently left out important issues that small businesses face, specifically, the costs associated with providing insurance to less than 50 people.  There’s really nothing that protects the small companies and the concern is once the spotlight is off the insurers, they’ll raise the premiums again, thus defeating the purpose.  They also reserve the right to consider a number of factors when determining premiums.  One family of five may very well pay more than another family of five based on nothing more than the neighborhood they live in, family histories of medical problems and any number of other factors.

This proposal was addressed to the U.S. Senate and even if this isn’t the solution, hopefully there’ll be a happy medium put into place that can finally put an end to this stand-off.  Too many are going without the necessary medical attention they need to live a normal and fulfilling life.  That should never be put on the back burner and ultimately determined by an insurance company’s negotiations with the government.

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