This is one critical way that Obama’s health law will make things even worse then the current health crisis: there will be a rapid increase in under-insurance, i.e. people who buy insurance thinking they are covered but then will find when they become ill that the cost of health care–after insurance pays its share–destroys them financially. The Obama plan allows insurance policies that only cover 60% of the cost of health treatments. People are going to find themselves ill, and in recovery with massive debt from health care. Bankruptcy from health problems is already a major problem, but it is going to get much worse under the Obama law. In Massachusetts, on which the Obama law is based, after three years of the law being in effect 89 percent of Massachusetts families who suffered medical bankruptcy had insurance coverage, but it was skimpy coverage (not as skimpy as the federal law will allow, which is even worse).
KZ
Obama Health Law Unlikely to Stem Medical Bankruptcies
When President Obama kicked off his health reform push, he highlighted our research finding that 2 million Americans suffer medical bankruptcy each year, promising to end this disgrace. Our latest figures warn that his reform won’t stanch the flow of medical debtors.
The Affordable Care Act (ACA) passed by Congress in March 2010 was modeled after Massachusetts’ 2006 health reform plan – a plan that’s now been up and running for more than three years. So Massachusetts offers a preview of what to expect when the ACA is fully implemented in 2014.
Unfortunately, medical bankruptcies haven’t dropped much – if at all – in Massachusetts. When we surveyed bankruptcy filers there in August 2009, 53 percent cited illness or medical bills as a cause of their bankruptcy, a percentage that’s statistically indistinguishable from the 59 percent figure we found in early 2007. Indeed, because the total number of bankruptcies soared in 2009, the actual number of medical bankruptcies increased from 7,504 in 2007 to 10,093 in 2009…
Click here to read the full article.
EDITOR: The 60% figure approximates Medicaid benefits, so it appears to be meant to bail out the government and hospitals rather than the patient
When I was discovered as having a chronic illness, tons of tests were ordered for me. I realized this illness could become out of control financially very quickly.
As much as the doctor’s insisted I have certain tests, some twice, I questioned their testing and came to the conclusion that I was, in fact, paying to CYA of the doctors. My reply then was “I would rather be dead than medically bankrupt.” I meant it then and I feel even stronger about that today.