How many Medical Bankruptcies were there in the past year?

Home Health Columnist / Guide · Oct 22, 2009

2005: medical bills leading cause of bankruptcy, harvard study finds

2001 study in 5 states found that medical problems contributed to at least 46.2% of

all bankruptcies. since then, health costs and the numbers of un- and underinsured have increased, and

bankruptcy laws have tightened

medical bankruptcy in the united states, 2007: results of a national study

as recently as 1981, only 8% of families filing for bankruptcy
did so in the aftermath of a serious medical problem.[color=#000064][color=#000064][color=#000064]1

by contrast, our 2001 study in 5 states found that illness or
medical bills contributed to about half of bankruptcies.[color=#000064][color=#000064][color=#000064]2

since then, the number of un- and underinsured americans
has grown;[color=#000064][color=#000064][color=#000064]3 health costs have increased; and congress
tightened the bankruptcy laws.[color=#000064][color=#000064][color=#000064]4...
[color=#000064][color=#000064][color=#000064]

using a conservative definition, 62.1% of all bankruptcies in 2007 were medical; 92% of these
medical debtors had medical debts over $5000, or 10% of pretax family income.

Home Health Columnist / Guide · Oct 22, 2009

2005: medical bills leading cause of bankruptcy, harvard study finds

2001 study in 5 states found that medical problems contributed to at least 46.2% of all bankruptcies. since then, health costs and the numbers of un- and underinsured have increased, and bankruptcy laws have tightened

medical bankruptcy in the united states, 2007: results of a national study

as recently as 1981, only 8% of families filing for bankruptcy did so in the aftermath of a serious medical problem.[color=#000064][color=#000064][color=#000064]1 by contrast, our 2001 study in 5 states found that illness ormedical bills contributed to about half of bankruptcies.[color=#000064][color=#000064][color=#000064]2 since then, the number of un- and underinsured americans
has grown; [color=#000064][color=#000064][color=#000064]3 health costs have increased; and congress tightened the bankruptcy laws.[color=#000064][color=#000064][color=#000064]4...
using a conservative definition, 62.1% of all bankruptcies in 2007 were medical; 92% of these medical debtors had medical debts over $5000, or 10% of pretax family income.

HM2VikingRN, RN · Oct 22, 2009

I am particularly proud of my Senator. Its a breath of fresh air that he is able and willing to speak truth to power.

Elvish, BSN, DNP, RN, NP · Oct 22, 2009

And he does it without yelling or name-calling. I wasn't sure how he'd do as a senator but have been pleasantly surprised.

CRNA2007 · Oct 25, 2009

Tough talk from amother democrat tax cheat.

http://minnesota.publicradio.org/display/web/2008/05/01/accountants/

Home Health Columnist / Guide · Oct 25, 2009

Tough talk from amother democrat tax cheat.
http://minnesota.publicradio.org/display/web/2008/05/01/accountants/

From article posted....

They pointed out multi-state tax filings can be intensely complicated, and accountants do mess up from time to time. But most of them also echoed Woodbury tax accountant Michael Shaffer.
"It really seemed like it was a rookie mistake," Shaffer said.
The mistake was that instead of paying taxes in the many states where he earned money from 2003 through 2006, Franken paid state income taxes only in the states where he lived -- New York and Minnesota. That meant he overpaid taxes in those two states, but shorted the other 17 states by more than $50,000.
Franken says he will pay those states now, plus interest and penalties, for a total of about $70,000. Then he'll file for a refund in Minnesota and New York.

Monies owed appear to be small in comparison to his total income..... and have noting to do with topic at hand ---

MEDICAL BANCRUPTCIES

Onekidneynurse · Oct 26, 2009

TgqqSHr0wVA
I'll say this for Senator Franken he does come to school with his homework finished.

And 100% were caused by poor planning, borrowing more than they could afford. When 46% something are caused SOLELY by medical bills then we should talk. Remember by filing bankruptcy those people got their health care for free.

GCTMT · Oct 26, 2009

And 100% were caused by poor planning, borrowing more than they could afford. When 46% something are caused SOLELY by medical bills then we should talk. Remember by filing bankruptcy those people got their health care for free.

If a person gets into a car accident (for example) and needs hospitalization, there's a chance they could need extensive medical treatment, the bills could run into the 10's of thousands, maybe even into the 100's of thousands.

How does a person (insured or uninsured) plan for that?

Onekidneynurse · Oct 29, 2009

If a person gets into a car accident (for example) and needs hospitalization, there's a chance they could need extensive medical treatment, the bills could run into the 10's of thousands, maybe even into the 100's of thousands.
How does a person (insured or uninsured) plan for that?

By buying car insurance. I have $300,000. If they can't fix me for that amount of money then let me go.

BahoRN · Nov 3, 2009

That's absurd. if you require long term care, rehabilitation, home care, etc... you'd eat up the $300,000 pretty quickly. And yes, they would let you go.

tewdles, RN · Nov 8, 2009

And 100% were caused by poor planning, borrowing more than they could afford. When 46% something are caused SOLELY by medical bills then we should talk. Remember by filing bankruptcy those people got their health care for free.

Let's see, I had breast cancer...my insurance did not cover the cost of my anesthesiology, my pathology, or one of my prescribed meds (not on formulary or nonparticipating physician groups). Cost me huge amounts of money in lost work, travel, and above mentioned bills. How exactly do I plan for that?

My husband had a bowel obstruction...had surgery at University of Michigan which the insurance company refused to pay for....none of the preop diagnostics, intraop service, postop inhospital care, or post discharge dressing supplies or nursing care. Nada...none of it...they called it pre-existing. How exactly does a person plan for that?

Your rather callous assumption that medical bankrupcy is not relevant unless the person has a huge savings account and no other debt is ridiculous. The fact that ONE serious interaction with our current health delivery system can RUIN the financial life of an american family is a disgrace. Your statement suggests that having a mortgage, a car payment (with insurance for both), and a loan for your new septic system (or whatever) is "borrowing more than they can afford"...I would bet that you have at least two of those debts as well...and just like the people you criticize, you afford it just fine IN THE ABSENCE OF ONE SERIOUS INTERACTION WITH HEALTHCARE THAT IS NOT COVERED BY YOUR INSURANCE. Here is your challenge...imagine that you need surgery...for something urgent and unexpected...and your insurance company refuses to pay. Imagine that you now negotiate with the hospital to pay them $2k/mo to pay off the $100k bill for services. Imagine that you go back to work as quickly as you can...but you still need time for follow up appts, for therapy, or whatever (none of it paid by the insurance). How does that fit into your budget? What else needs to happen before you can no longer make it on your income, before bankrupcy becomes the best option so that your family at least has a house to live in? If this happens to you does that make you a poor planner? If you only had $50k in savings but needed $100k to stave off bankrupcy, does that make you a poor planner?

A total lack of compassion for those unfortunate enough to lack real options when it comes to insurance and healthcare is becoming all too common and increasingly celebrated.