Catastrophic illness claimed to have hit nearly half of all personal bankruptcies in the United States. According to recent data from a study conducted by Harvard University, most people who go bankrupt because of medical problems also have health insurance. The researchers found that many private insurance plans that offer limited catastrophic coverage was inadequate and offer little financial security for less severe illnesses.
Questionnaires distributed in 1.771 bankruptcy filers in 2001 in California, Illinois, Pennsylvania, Tennessee and Texas. According to the study, for a total of 1. 46 million personal bankruptcies were presented in the United States in 2001.
Almost 1,000 people surveyed gave detailed interviews about the financial condition and care. Illness and increased medical costs were reported as the cause, in part, 46. 2 percent of personal bankruptcies. The number increased to 54. 5 percent when he was an extra three other factors included as triggers for medical-related bankruptcies: births, deaths and addiction to gambling. The study estimates that medical bankruptcies affect about 2 million Americans today, every year, among which 700,000 children.
The study also cited that most of those seeking court protection from creditors had health insurance, with more than three-quarters reporting they had coverage at the beginning of the health disaster caused by failure. The study also found that 38 percent of participants had lost temporarily for the time filed for bankruptcy, serious illness or injury often leads to both loss of jobs and insurance.
Unfortunately, it is clear that for many Americans, serious illness, often leads to loss of jobs, which also means the loss of health insurance. Expensive coverage through COBRA, and good intentions, it makes sense if people can not afford to pay for it. Bankruptcy Families also lose more active. One in five families without food. A third had utilities turned off, and nearly two-thirds needed skipped visits doctor or dentist.
The results of the study also said medical-related bankruptcies are often affected middle-class families is difficult, with 56 percent of filers are graduates who owned a house. The study did not, however, consider how many bankruptcy filers double income families where both partners have health insurance.
The results echo a Harvard previous studies have generally reported that the majority of bankruptcy filers who report health problems as the main cause of failure, and other factors, including easy credit, the loss of jobs and economic mismanagement .
Many experts on health insurance show that the Harvard study did not adequately investigate the role of disability income protection plan and personal savings can play in helping people with medical problems, avoid bankruptcy.
If you are insured, the concern to cover catastrophic current individual plan for your health, or simply tired of paying an arm and a leg for major medical insurance, you should take a look at the global revolutionary individual health insurance solutions created by Precedent specifically for young, healthy people.
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