Rising Medical Bankruptcies to Help Spur Healthcare Reform
A surge of medical bankruptcies is likely to strengthen the political impetus for healthcare reform efforts in Congress, according to Oxford Analytica.
Statistics from the Bankruptcy Data Project at Harvard indicate that the number of total individuals in all chapters of bankruptcy in the month of April 2009 was more than 40% higher than in April 2008. Medical costs are a key — and growing — factor behind this jump in individual bankruptcy filings, OxAn says. “A survey by the Commonwealth Fund showed that 41% of adults had medical debt or had problems paying their medical bills in 2007; it is not surprising that these widespread financial pressures can lead to full-blown bankruptcy in the context of a major recession.”
“As the debate over healthcare reform heats up ahead of President Barack Obama’s August deadline for legislation, policymakers will point to the devastation medical costs can have on household finances as another justification for expansions in health insurance. Health insurance stability — provided through affordability and portability — should help prevent medical bankruptcies by protecting against financial risk.”
With the added pressures of the recession, medical bankruptcies will surge this year. However, this is likely to strengthen the political impetus for healthcare reform efforts in Congress, which are continuing to progress.
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