Medical Bankruptcies

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While the political debate about contraception rages on, the problem facing Americans about over-all cost continues unchecked.

Take medical bankruptcies, for example. Statistically two-thirds of all personal bankruptcies in the US are related to medical bills, according to a 2009 study in the American Journal of Medicine. Business Week states that this figure was only 8% in 1981. A CNN Report that same year found the number had climbed from 46% in 2001 to 62% in 2008. In Massachusetts where  progressive reform has been instituted, the number of ‘medical’ bankruptcies climbed from 7504 in 2007 to 1000 in 2009.  Clearly the trend is on the increase, and health reform measures to date have not slowed it.

The New York Times reports that an analysis of the medical bills shows 48% were related to hospital stays, 19% went for pharmaceuticals, 15% for doctors and 4% in insurance premiums.  A 2008 study by the Robert Woods Johnson Foundation found that a cancer diagnosis was behind many of these sad cases, but chronic disease such as multiple sclerosis and diabetes accounted for large shares as well.

Most disturbing is the fact that the majority of those filing for medically related bankruptcies are college-educated, middle class and working. Three-quarters were insured when they started. Only 40% said a decline in their income was a factor.  A vast majority found their steep slide began as they started putting charges on credit cards.

“We need to rethink health reform,” says Harvard-based Dr. Steffie Woolhandler, associate professor of medicine who has studied the problem. “Covering the uninsured isn’t enough. We also must upgrade and guarantee continuous coverage for those who have insurance.”

American voters would no doubt like to see this problem addressed before we resume the debate about the morality of stem-cell research, which  is likely on its way.

Tom Godfrey

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