MEDICAL BILLS AND BANKRUPTCY FILINGS
According to a new study by Aparna Mathur, a research fellow at the American Enterprise Institute, she invalidates the idea that more than half of all bankruptcies are caused by medical debt. She found that only about one-quarter of bankruptcy filers have debts that are primarily medical in nature. The most common problem she found for bankruptcies were related to credit card debts.
In the study, she showed that only 27 percent of filings are a consequence of primarily medical debt and in about 36 percent of cases, medical debts co-existed with primarily credit card debts.
Source: Aparna Mathur, "Medical Bills and Bankruptcy Filings," American Enterprise Institute, July 19, 2006.
Other information on this topic can be found at:
[ MarketWatch: Illness And Injury As Contributors To Bankruptcy -- Himmelstein et al., 10.1377/hlthaff.w5.63 -- Health Affairs]
Although medical costs do contribute to bankruptcies, it is living outside of your means that appear to be the bigger problem. The credit card explosion and the direct advertising to teens is destroying our economy.
In the study, she showed that only 27 percent of filings are a consequence of primarily medical debt and in about 36 percent of cases, medical debts co-existed with primarily credit card debts.
Source: Aparna Mathur, "Medical Bills and Bankruptcy Filings," American Enterprise Institute, July 19, 2006.
Other information on this topic can be found at:
[ MarketWatch: Illness And Injury As Contributors To Bankruptcy -- Himmelstein et al., 10.1377/hlthaff.w5.63 -- Health Affairs]
Although medical costs do contribute to bankruptcies, it is living outside of your means that appear to be the bigger problem. The credit card explosion and the direct advertising to teens is destroying our economy.
posted by Anonymous at 5:55 AM
7 Comments:
Why ask HB anything concerning the cost of healthcare, he is complaining because he is making only 40% profit in his business. I'm sure he could care less if people can or cannot afford to pay. It seems that he wants to make more than the 40% profit regardless of how it effects anyone.
Anyone who reads these blogs knows that I have had many a disagreement with HB. Some, fairly heated. This 40% profit crap(and that is what it is)needs to stop.
I doubt that HB is going to miss any meals, fail to pay his heating bill, etc. I would imagine, even with declining profits, that he manages to live pretty well(or is it good, never can remember). Even if Doc did use the 40% number in some previous post, it is not 40% as most businesses would figure it. No way. If it was that good, corporate America would have totally taken it over by now.
Quote- Healthblogger said...
Comments as the ones seen here, show this complete lack of understanding of how the current healthcare system operates and the significan bias and almost "brainwashing" certain individuals have towards physicians.
Employees in every profession who work hard and do their jobs should be able to expect advancements in salary and/or positions. It's the American way.
The CEO at Floyd and most other hospitals make far more than 95% of the primary care physicians. They also have retirement plans paying them anywhere from 65%-80% of their salaries for 20 years after their retirement.
CEO's of insurance companies make millions and many other professions make far more than primary care physicians with a lot less eduacation or time spent in their fields.
Physicians are no different. We provide a service and should expect to be paid for that service. Overhead expenses average about 55% for most primary care doctors and inflation and other expenses continue to increase just as every other field.
Hospitals and physicians do not take care of each other and cannot because of current laws. That is part of the current problem. Your fundamental lack of understanding, again demonstrates the purely emotional responses we have seen here.
Big insurance companies and lobbyists have continually taken over healthcare at the expense of patients and physicians.
Physicians can "quit" as mentioned, but it will not be that we quit taking care of patients.
It is that we quit taking certain insurance as we are beginning to do. Patients will continue to need the service we provide and those who value the service will find ways to pay for the service.
If Physicians would begin taking only payments from patients we could cut our overhead by at least a third to half and be able to drop the current charges by 50%. The patients could then have their insurance reimburse them at the discounted rates they give us.
Things would change in a hurry if that occured. But that is the way every other type of insurance works except in the Medical profession.
8:39 AM
I guess the 40% profit is crap, the anonymous poster should have said 45%. In any event, I question the statements made concerning the American Way. I would love to see anyone in the medical field drop their fees by 50%. Don't hold your breath!
We'll try one more time.
Accountants for medical practices use the national average of between 50-65% of collections going to what is considered overhead in a physicians office. Overhead does not include many expenses that most other industries include. Disability is not an expense at the company level, any retirement plan for physicians is not an expense for the company, certain society dues and publications are not an expense at the company level, depending on the setup with employed physicians, they may or may not be included in the "overhead", etc.
Your failure to understand basic accounting and unwillingness to accept basic facts on the differences continues to show your deep seated resentment towards either me or physicians in general.
Again, if most physicians kept their salaries constant or with a 3-4% increase and counted it as an expense for the company, most would remain in the red for the past 3 years.
It's not difficult to understand.
As for the other comment, we do have the best healthcare, we just have not found the best way to administer it.
HB said if we would only accept payments from patients we could cut our overhead by a third to half and drop the current charges by 50%. (If physicans are barely making it and drop charges by a third to half how are they going to save the patients 50%)? Does a sane person really believe this. I believe if 50% were to be saved it would go in the physicians pocket!!! PA dropped my insurance company UNH as a network provider and said UHC would pay 80% and I could pay 20% of the fee charged. (I now pay a $15 co-pay) So I have several questions who comes out ahead on this deal the doctor or patient????? And does the phyiscian still get the same full payment for the the sevice charged plus 20% cash from the patient????? If this is the case physicians would be earning a whopping 65% profit!!! Plus the patient would be losing 20% minus $15.00. (in my case). It dosen't take a 10 year doctor degree to figure this out just common sense!!! It sounds like to me Pa is taking this route but I believe in the end they will come to thier senses. But for me it is too late I have found a GOOD PHYSICAN that will accept my insuance, SO LONG PA I wish you luck with what you are trying to do (yea right) A FORMER OF PA!!!!!!!!!!!!!!!
Successful people don't focus on their problems. They get off their rear and do something to make their lives better. A negative mindset will always breed negative results. The greatest forces for change have not looked down to see how low they can go; they look up to see the possibilities. Grab hold of some hope--it's not so bad out there!
One of my favorite Christian authors has said to stop telling your God how big your problems are, and start telling your problems how big your God is. I think that change in attitude could do a lot for your life from what I've seen on this blog. There is too much hatred and negativity in your postings. Unfortunately, you also claim to be a Christian, casting a bad light on all of us who truly love life and live it everyday as a gift from God. Christians do not wake up and ponder ways to destroy others; instead we find ways to lift others up--regardless of whether or not we like what they do, or have done, to us.
Quote " Your failure to understand basic accounting and unwillingness to accept basic facts on the differences continues to show your deep seated resentment towards either me or physicians in general."
It might suprise you to know that I have worked in accounting all my life. I do understand the principle rules of accounting. In fact I was in charge of the accounting for a multi million dollar business. I also understand the many, many ways business can write off their expenses. I have nothing against you or any other Physician. I will say that a business such as yours, does have expenses that must be paid, (liability ins., retirement) but anyone that is in business for themselves has the same expense . I would venture to say that Physicians problably pay less taxes based on income than most people. If you are not happy with your business, you can always let your patients pay for your service and let them file their insurance. In fact I have a Physician that does just that. I knew that going in and quite frankly I recommend him highly. Its your choice, but it can also be a big risk. I stand by the fact that I don't think you would cut your fees in half. I respect anyone that is working in the Medical Field, some do it because they genuinely care and then there are others that could care less. It doesn't take an educated person to tell the difference.
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