Do You Have Your Health (Care?)

From Reuters:

Americans are struggling to pay for healthcare in the ongoing economic recession, with a quarter saying they have had trouble in the past 12 months, according to a survey released on Monday.

Baby boomers -- the generation born between 1946 and 1964 -- had the most trouble and were the most likely to put off medical treatments or services, said researchers at Center for Healthcare Improvement, part of the Healthcare business of Thomson Reuters.

The study (available here) found that 17.4 percent of households reported postponing or delaying healthcare over the past year.

The U.S. Congress is working on a way to cover more of the 46 million people who lack health insurance, lower costs and coordinate care better. President Barack Obama has made it one of his administration's top priorities.

Americans pay more per capita for healthcare than people in any other country, yet have high rates of infant mortality, diabetes, untreated heart disease and other conditions. Americans are often dissatisfied with their access to care.

A recent study by Harvard University researchers suggests just how tough those medical bills can become to pay.

From the Los Angeles Times:

The study found that medical bills, plus related problems such as lost wages for the ill and their caregivers, contributed to 62% of all bankruptcies filed in 2007. On the campaign trail last year and in the White House this year, Obama had cited an earlier study by the same authors showing that such expenses played a part in 55% of bankruptcies in 2001.

Medical insurance isn't much help, either. About 78% of bankruptcy filers burdened by healthcare expenses were insured, according to the survey, to be published in the August issue of the American Journal of Medicine.

"Health insurance is not a guarantee that illness won't bankrupt you," said Steffie Woolhandler, one of the authors, a practicing physician and an associate medical professor at Harvard.

"Lots of health insurance comes with big co-payments, deductibles and uncovered services," she said. "So you can be insured and still end up with big bills. At the same time, even if you have good insurance through your employer, you can lose it if you get sick and can't work."

Most people who filed medical-related bankruptcies "were solidly middle class before financial disaster hit," the study says. Two-thirds were homeowners, and most had gone to college.

The study does not suggest that medical expenses were the sole cause for these bankruptcies, but it does identify them as a contributing factor. The increase in such filings occurred despite a 2005 law aimed at making it more difficult for individuals to seek court protection from creditors.

And the latest study probably understates the current burden of medical expenses because it is based on bankruptcies filed before the recession hit.