What’s the Most Common Cause of Bankruptcy?
In an amazing article by the NCHC (National Coalition of Health Care), it was reported that “50% of all bankruptcy filings were partly the result of medical expenses.” In another report, a Harvard study found that this number actually attributed 62.1% of bankruptcies to health care costs. This is a startling amount when there is so much bad news about the economy, layoffs, and foreclosures. Sadly, but the time you finish reading this post, approximately 4 people will have filed for bankruptcy due to a serious health problem assuming you took 2 minutes to read this (every 30 seconds)!
It is no secret that the US spends more on health care than any other country in the world. Many people might not know though that the average lifespan of Americans (a common indicator of a country’s health) is no where near the top, but #24 according to the World Health Organization (WHO)at about 70 years old. Ironically, the NCHC mentions that increased spending in healthcare ultimately leads to longer life spans of its people. When the WHO analyzed a country’s health based off of the amount each country spent versus the actual health of the country, the US ranked even lower at #37!
There is no question that based off of the numbers, something just is not right with our healthcare system. President Obama was recently quoted at this year’s AMA annual meeting that “It (our healthcare system) is a model that rewards the quantity of care rather than the quality of care.” There is not the fault of doctors though who are ruled by health insurance companies. Sadly, of all of the health related bankruptcies found in the Harvard study, 78% of them already had insurance! They were taken down by the extra costs including co-pays, deductibles, and uncovered services.
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