Medical bankruptcy has become a part of the health care debate, partly due to a recent report by by Harvard researchers. The report, itself, has a good share of debate about its numbers. They stated that medical problems caused 62% of all personal bankruptcies filed in the U.S. in 2007.

Of course the aginners jumped in with both feet and their normal pompous attitude. (If you haven’t read earlier posts I should explain that aginners are folks who are against just about anything that’s good for all the people.) One of ‘em wrote, "So, where do we draw the line between ‘medical bankruptcy’ and financial irresponsibility? If someone has a 8 month emergency fund and has been maxing out their 401k and is insured for medical and disability, it’s hard to figure a way that any illness would drive them to bankruptcy."

Now, let me ask you this? Are you financially responsible because you, like that writer, have an 8-month financial emergency fund? Have you maxed your 401K contributions? Do you have full coverage medical and disability insurance? I’m assuming he thinks raiding your retirement fund that lost 40% of its value last year is a good thing? Now I’m sorta under the impression that people file bankruptcy to protect their future, not devastate it.

I’d recommend you look at the charts and statistics developed by the Kaiser Foundation and others about health insurance costs. You can find those charts in the article titled, Sen. Blanche Lincoln Co-sponsors SHOP.

Did you notice that health insurance premiums, and I’m talking about what your employer holds out of your pay, rose to $280 per month in 2008? It was only $135 per month for family coverage in 2000. I called ol’ Jethro Bodine to do some cipherin’ on this ’cause he knows all those guzintahs and such. He figured for a long spell and came back to say the employee portion of health insurance more than doubled during the Bush Administration years.

Did you notice that gasoline prices have risen during those same years? On January 3, 2000, the average price for a gallon of regular gasoline was $1.26. On June 1, 2009, the average price for a gallon of regular gas was $2.50 and that, folks, is within a hair of being doubled.

Okay, everybody raise your hand whose salary doubled during those eight years! Even if you got cost-of-living increases based on the inflation rate, health care costs were rising at double the inflation rate. (continued below)

What will YOU do – or – What WOULD you do?

Many employers are now moving to Consumer Directed Health (CDH) insurance. A person I talked to who wishes to remain anonymous was laid off in 2008, unemployed for 8 months, and eventually found a job with a salary that was $12,000 less than the former position. The new company offered CDH plans. The new plan is not terribly expensive by today’s standards: $125 a month. It pays 80% of most procedures after a $2,300 deductible, and it does not cover dental. So, in addition to the $125.00 per month for the health insurance premium, this employee also puts $75.00 monthly into a Health Savings Account.

Now, this person did have 8 months of emergency funds available when coupled with the $850 unemployment income available after paying COBRA insurance premiums of $750.00 monthly. Only $25,000 of savings had to be used to keep all bills paid.

Let’s think about this person’s situation today. Savings is $25,000 less than it was. Paycheck contributions to health care costs are $200 monthly from a salary that is $1,000 less each month. The $2,300 annual deductible is offset partially by the $900 going into the health savings account. What if something happened now to this person or a family member?

Now, what about the millions of people currently unemployed, uninsured or underinsured? The Harvard researchers were surprised to learn that 78% of those who filed a medically-related bankruptcy had health insurance and that included 60.3% who had private insurance.

What would you do if faced with this situation? Would aginners be calling you irresponsible?

It’s Time for Change

No citizen of the greatest nation on earth should be forced into bankruptcy because of medical costs. Yet, when it comes to health care, the United States of America is not considered to be the greatest nation on earth. It’s not even listed in the Top Ten, and barely listed in the Top Twenty. The government, founded in part to promote the general welfare of its citizens, does not provide for a healthy citizen population.

Single Payer Health Insurance should be an option for all Americans. But it’s not even being considered at this time. The health insurance industry, like the banking industry, is getting its way in Congress. Yes, it’s time for change. It’s time for single payer health insurance. It may be time to replace Congress with people who care.

Public Citizen: Medical bankruptcy study highlights need for … – Public Citizen: Medical bankruptcy study highlights need for single-payer. Statement of Sidney Wolfe, M.D., Director, Health Research Group at Public Citizen Published on Jun 4, 2009 – 6:16:50 AM …

NOW! Blog » Medical Bankruptcy – Time to update that statistic – Bankruptcy is a personal tragedy, of course. But it’s also an economic catastrophe. How do we expect to get out of our economic crisis is health care costs are keeping hardworking Americans down like that? …

The Domino Effect: Medical Bills Bring People to Bankruptcy … – I passed one of the well-known images of Los Angeles’ homeless population today en route to work: a shopping cart laden with plastic bags, taut with.