New Health Care Legislation May Not Affect Medical Bankruptcies
A recent study found that a large majority of those bankruptcies were filed despite the person having health insurance.
April 08, 2011
New Health Care Legislation May Not Affect Medical BankruptciesStudy Finds that Medical Debts May Still Pile Up Even With New Law
Many bankruptcies relate to high or unexpected medical expenses. The surprising part? A recent study found that a large majority of those bankruptcies were filed despite the person having health insurance.
Debate surrounding the health care reform bill, which was passed in March of 2010, included much discussion regarding its effect on bankruptcies and foreclosures. Some argued that expanded health care coverage would help prevent medical bankruptcies.
A study in the American Journal of Medicine is casting some doubt on that position. The study looked at medical bankruptcies in Massachusetts over the past several years. The federal law is modeled after the Massachusetts health care plan models itself. Medical bankruptciesaccounted for 52.9 percent of all bankruptcies in Massachusetts the last two years, and the total number of bankruptcies in the state increased by 51 percent. The study concluded that even those with health insurance can have medical bills they can't afford and still may be forced to file bankruptcy.
For example, the study calculated in one instance that with premiums, deductibles and limited coverage, an average couple had as much as $20,500 in unreimbursed annual medical costs. If the person who needs care is the sole or primary earner in the family, it is even more likely medical bills will pile up.
Underinsured Persons Still at Risk for Medical Bankruptcy
The authors of the study note that underinsured is as much the problem as uninsured. However, there is no clear-cut answer as to who is underinsured. Rather, only a case-by-case analysis shows who is underinsured and who is not.
Health Care Costs Rising
A significant reason for the increased health debt are the increased costs of both coverage and medical procedures. Recent proposals to keep medical costs in check include an overhaul of how doctors and hospitals are paid and stricter regulation of insurance premiums, but no legislation is currently pending.
Unfortunate medical costs can place a burden on finances. If you are experiencing mounting debt due to medical bills, contact a local bankruptcy attorney to determine whether bankruptcy is the right option for you.
Article provided by Nahrgang & Associates, P.C.
Visit us at http://www.mnahrgang.com