Congress Passes Bankruptcy Reform Bill

[benedictj]

I realize that I'm stepping in a little late here but...

You have to love canadians weighing in on American problems (sorry, guys but somebody had to say it). The only reason I point this out is that there is a BIG POINT in what Mindtonic is saying that you guys aren't subject to- Health Care Expenses. (I'd also love to see the cost of living figures for you guys vs. ours).

I'd be curious to see the breakdown of folks who filed for bankruptcy because of health issues and how that compared to their coverage, if they had any at all. The total number of americans living without coverage far exceeds the population of any of your provences.

Average Joe has a heart attack, has no coverage and is forced into $100,000 in debt. He was even planning for it, and had a $20,000 nest egg socked away, but woomph, it is gone. He can't work for 12 months because his job was too physically strenous, disability pays a quarter of what he normally makes and the hospital is beating down his door for payment, theatening to reposses his home and all of his belongings. On top of that, he has to continue seeing a cardiologist, general praticioner and a physical therapist. In addition, the drugs he needs to take cost him roughly $250 a week. What would you do? Would you seek some sort of shelter that would allow you to actually stay alive and keep a roof over your head?

I agree that it sucks that there are folks out there who are abusing bankruptcy law, but that doesn't mean it should be cut back. It means it should be monitored.

Still, there are so many factors inside of this entire debate that are unaccounted for, so many examples like the one above, where the little guy-that guy who worked hard for years, paid his bills, voted, payed taxes, went to church, put his kids through college- that guys is getting screwed by life in a system that he can't afford. A lot of it has less to do with 'entitlement socities' than it does with 'ownership socities', less to do with the theories of human nature than the Consumer Price Index, Inflation, corporate malafescance, and politicians who promise the sky and then stab the voter in the back when he's too busy working for peanuts to pay attention.

 

[Matak]

You have a definate point there BJ (hope you don't mind the abbreviation). Free health care does make a big difference. I would like to point out though that even mediocre coverage in the States gets you far better service than the free version we have here.

What does private medical insurance cover in the US? What doesn't it cover that would cause a person to go bankrupt in some cases?

 

[slipknottin]

Average Joe has a heart attack, has no coverage and is forced into $100,000 in debt. He was even planning for it, and had a $20,000 nest egg socked away, but woomph, it is gone.

You mean the rest of us should have to pay because this person didnt feel like getting insurance?

 

[benedictj]

You have a definate point there BJ (hope you don't mind the abbreviation). Free health care does make a big difference. I would like to point out though that even mediocre coverage in the States gets you far better service than the free version we have here.
What does private medical insurance cover in the US? What doesn't it cover that would cause a person to go bankrupt in some cases?

Actually, there is a really good editorial series about the Health Care Crisis here in the US being written by Krugman in the NY Times (it's free to check out online if you're interested).

Your point about the US getting far better service is actually only half true. Of all the industrialized countries in the world, the US actually has the least cost effective health care system (dollars to service). While many might argue that this is because we get state of the art treatment, that is only true in metropolitan areas. Further, 15% of all health care costs in the US go to the administrative aspect, not actual treatment (as opposed to about 5% in the rest of the first world).

As far as private health care coverage, it really varies from plan to plan. I can tell you from personal experience that many insurance companies devote a great deal of time to denying payment for certain things. For example, my wife has a persistant stomach problem that had previously been treated with prescription medication. When we moved to new york a few years ago and she changed carriers (which you must do when you change states of residence), we had to fight the insurance company to get them to cover the medication. Insurance companies here establish what are called formularies, which are basically a list of drugs which they will cover for certain ailments. In my wife's case the drug she needed was to treat full blown acid reflux, they denied her request for coverage and recommended she take milk of magnesia. So, there you have a case of insurance companies attempting to dictate treatment, not actual doctors. All for the price of $500 plus a month( for her only, I am healthy enough to feel confident avoiding coverage for the time being. If we tried to cover the two of us, the would hand out $50 discount and only charge us $950 a month).

Further, if you have coverage and are diagnosed with any condition, you must maintain coverage. That is, if you have a pre-existing condition, a health insurance company will not give you a plan unless you have had no lapses in coverage.

But, the biggest issue is those who are not covered. There are approximately 40 million people living in the US without health care, this includes low income, poverty stricken children (their coverage varies on a state to state basis). Compounding the problem is the fact that employers are cutting benefits, the government is cutting benefits for veterans, and medicare for those with the lowest incomes is hardly affordable either.

Anyway, apologies for the long ramble, but that's a sampling of US health care.

I can say I definitely believe that people should have to work hard. It is character building and a great source of pride. I also am a strong advocate of accountability. But that said, especially in when living in a nation where my portion of the national debt equates to something like $26,000 (my actual debt is about $1300), it should be financially solvent for a person to live modestly if they commit themselves. Oddly enough, it really isn't.

 

[slipknottin]

Your point about the US getting far better service is actually only half true. Of all the industrialized countries in the world, the US actually has the least cost effective health care system (dollars to service).

How are you coming up with that number?