About half of personal bankruptcies in the United States are caused, at least in part, by medical bills and illnesses that leave people unable to keep up with their expenses, according to a study released today in the journal Health Affairs.
Most of the people who stumbled financially after illnesses had health insurance
, but many of them lost their coverage after becoming sick, the study found.
'Nobody's Safe'
The study -- by three Harvard researchers and an Ohio University professor -- relied on 2001 data from almost 1,800 bankruptcy filings in five federal judicial districts.
Dr. David Himmelstein, a Harvard Medical School professor and one of the report's authors, said some of the bankruptcy filers had insurance that left them with high out-of-pocket costs, and others lost their benefits altogether when they lost their jobs.
"The message we take from it, first of all, is: Nobody's safe, other than Bill Gates," Himmelstein said. "People who've done all the right things -- they've gone to college, they've bought a home, they've had good jobs, they've had health insurance all their lives -- find that that doesn't protect them."
Falling Behind
Himmelstein and the report's other authors advocate broad changes that would make the U.S. health care system more like those in Canada and Western Europe.
Kevin Williams, a counselor at the Consumer Credit Counseling Service of Fort Worth, said most of his clients who seek bankruptcy protection are grappling with a combination of problems.
That sometimes includes expensive hospital bills, or unpaid doctor's bills as low as $25. Combined with other, non-medical expenses, the bills can become insurmountable, he said.
"If they had a loss of income due to job loss or illness that caused them to fall behind, it's difficult to get caught back up," Williams said.
© 2005 Fort Worth Star-Telegram, Texas. All rights reserved.
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