Insured, but Bankrupted by Health Crises

[Michael]

Health insurance is supposed to offer protection — both medically and financially. But as it turns out, an estimated three-quarters of people who are pushed into personal bankruptcy by medical problems actually had insurance when they got sick or were injured.

Source-NYTimes (http://www.nytimes.com/2009/07/01/business/01meddebt.html?_r=2&hp)

This is apparently due to two different phenomena I think. On the one hand there is 'recission' where the insurance company denies coverage using obscure loopholes in the policy agreement. Secondly, there is a large class of quasi-fraudulent insurance policies being sold which don't actually cover healthcare expenses.

Between these two trends, we have the spectacle of three-quarters of American bankruptcies due to medical expenses coming from people who actually had (or supposedly had) healthcare insurance specifically to prevent that outcome.

Bottom line is that the US private healthcare insurance system is dysfunctional. I don't see how any other conclusion can be drawn here.

The amazing thing is, why so many Senators working so hard to preserve this system against any kind of change/reform or improvement?

[Americano]

Source-NYTimes (http://www.nytimes.com/2009/07/01/business/01meddebt.html?_r=2&hp)

This is apparently due to two different phenomena I think. On the one hand there is 'recission' where the insurance company denies coverage using obscure loopholes in the policy agreement. Secondly, there is a large class of quasi-fraudulent insurance policies being sold which don't actually cover healthcare expenses.

Between these two trends, we have the spectacle of three-quarters of American bankruptcies due to medical expenses coming from people who actually had (or supposedly had) healthcare insurance specifically to prevent that outcome.

Bottom line is that the US private healthcare insurance system is dysfunctional. I don't see how any other conclusion can be drawn here.

The amazing thing is, why so many Senators working so hard to preserve this system against any kind of change/reform or improvement?

I don't know what it is now but 15-years ago insurers were capping total possible payouts on company provided health care at $250k. Not for one instance but total annual payout. Companies loved it due to the spectacular cost savings involved, as did insurers. Even that long ago $250k didn't go very far for a serious medical circumstance.

Senators are directed by lobbyists, no other factor involved.

[Michael]

Senators are directed by lobbyists, no other factor involved.

Indeed, that's the problem. Always has been. I remember Mark Twain's (I think) description of the Honorable Senator for Railroads and the Honorable Senator for the Banking Interest. Now there are Honorable Senators for the Healthcare Insurance industry.

Problem is, I don't see any short, medium or long term (realistic) solution to this problem.

[Evangeline]

Indeed, that's the problem. Always has been. I remember Mark Twain's (I think) description of the Honorable Senator for Railroads and the Honorable Senator for the Banking Interest. Now there are Honorable Senators for the Healthcare Insurance industry.

Problem is, I don't see any short, medium or long term (realistic) solution to this problem.

Especially with the Republicans standing in the way of solving the problem.

[Lily]

Indeed, that's the problem. Always has been. I remember Mark Twain's (I think) description of the Honorable Senator for Railroads and the Honorable Senator for the Banking Interest. Now there are Honorable Senators for the Healthcare Insurance industry.

Problem is, I don't see any short, medium or long term (realistic) solution to this problem.

Vote the bums out!

Okay, I know that is probably unrealistic, but I do so like typing that. :)

[Americano]

Indeed, that's the problem. Always has been. I remember Mark Twain's (I think) description of the Honorable Senator for Railroads and the Honorable Senator for the Banking Interest. Now there are Honorable Senators for the Healthcare Insurance industry.

Problem is, I don't see any short, medium or long term (realistic) solution to this problem.

There isn't. The US voting public is like an abused wife who has accepted that role in life.