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The Greatest Cause of Bankruptcy in the US? May be Surprising to Many. |
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Harvard researchers say 62% of all personal bankruptcies in the US in 2007 were caused by health problems -- and 78% of those filers had insurance.
 Medical problems caused 62% of all personal bankruptcies filed in the U.S. in 2007, according to a study by Harvard researchers. And in a finding that surprised even the researchers, 78% of those filers had medical insurance at the start of their illnesses, including 60.3% who had private coverage, not Medicare or Medicaid.
Medically related bankruptcies have been rising steadily for decades. In 1981, only 8% of families filing for bankruptcy cited a serious medical problem as the reason, while a 2001 study of bankruptcies in five states by the same researchers found that illness or medical bills contributed to 50% of all filings.
This newest, nationwide study, conducted before the start of the current recession, found that the filers were for the most part primarily middle class before medical disaster hit. Two-thirds owned their homes, and three-fifths had gone to college.
But medically bankrupt families with private insurance reported average out-of-pocket medical bills of $17,749, while the uninsured's bills averaged $26,971. Of the families that started out with insurance but lost it during the course of illnesses, medical bills averaged $22,658.
"For middle-class Americans, health insurance offers little protection. Most of us have policies with so many loopholes, co-payments and deductibles that illness can put you in the poorhouse," said lead author Himmelstein. "Unless you're Warren Buffett, your family is just one serious illness away from bankruptcy."
The study underscores President Barack Obama's arguments in calling for health care reform legislation this year. In a recent letter to Democratic Senate leaders, the president said: "Health care reform is not a luxury. It's a necessity we cannot defer. Soaring health care costs make our current course unsustainable. It is unsustainable for our families, whose spiraling premiums and out-of-pocket expenses are pushing them into bankruptcy and forcing them to go without the checkups and prescriptions they need."
The researchers examined the court records of a random sample of 2,314 bankruptcy filings across the nation during early 2007 and contacted those filers for written explanations. The researchers then followed up with extensive phone interviews of 1,032 of those filers.
They found that a number of medical factors contributed to a family's financial disaster. More than 90% of medically related bankruptcies were caused by high medical bills directly or medical costs that were so high the family was forced to mortgage their home. The remaining 8% went bankrupt because a medical problem caused them to lose income.
The researchers were not able to track credit card defaults caused by medical bills, but a 2007 study found that, of low- and middle-income households with credit card debt, 29% used their plastic to pay off medical expenses.
 Individuals with diabetes, one of the most common chronic diseases in the U.S., and those with neurological illnesses such as multiple sclerosis had the highest costs, an average of $26,971 and $34,167, respectively. Hospital bills were the largest single expense for half of all medically bankrupt families.
As people of faith, we should promote wellness and embrace a lifestyle built around nutrition which would greatly decrease out susceptibility to illnesses and diseases that can harm our physical health as well as our financial health. Regardless of those that have insurance, this study clearly proves that health insurance providers can still leave us holding debts that are hard to recover from. Proverbs 4:7 states, “wisdom is the principal thing; therefore get wisdom: And with all thy getting, get understanding”.
AMEZNews
(Contributions by BusinessWeek / MSN)
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September 8-12, 2010
St. Paul AME Zion
700 Muscogee Road
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850-937-9001
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September 21-26, 2010
Zion Temple AME Zion Church
205 North Church Street
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September 22-26, 2010
McCalla Chapel AME Zion Church
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Bessemer, AL 35022
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September 26, 2010
As a symbol of unity, all women of the A.M.E. Zion Church are requested to wear white. Contact the A.M.E. Zion Church Department of Overseas Missions for information concerning this observance.
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October 6-9, 2010
Covening at Lomax-Hannon Junior College
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Greenville, AL 36037
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October 8-9, 2010
Camp Dorothy Walls Conference & Retreat Center
495 Cragmont Road
Black Mountain, NC 28711
Ph: 828-419-9200
Fx: 828-419-9222
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October 13-17, 2010
Oak Street AME Zion Church
1500 Oak Street
Montgomery, AL 36108
334-263-3200
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October 19-24, 2010
Greater Salem AME Zion
4414 Salem Road 35
Panola, AL 35477
205-462-1458
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October 20-24, 2010
Shiloh #1 AME Zion Church
4970 County Road 24
Auburn, AL 36830
334-725-0045
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October 2010
On this occasion, programs shall be observed in memory of Anna L. Anderson and each member of the Society is asked to contribute five dollars ($5.00) to the Council.
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October 29-31, 2010
Connectional Lay Council
"Equipping The Laity For Evangelism"
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November 9-14, 2010
Ford Chapel AME Zion
212 West Mitchell Road
Memphis, TN 38109
901-785-6630
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November 10-14, 2010
Covening at Small Memorial AME Zion Church
19 County Road 21,
Jefferson, AL 36732
334-289-5565
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November 17-21, 2010
Pilgrim Rest AME Zion Church
125 Greer Avenue
Whistler, AL 36612
251-456-5629
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November 2010
The Young Adult Missionary Society Annual Observance, shall be celebrated to recognize Dr. Willa Mae Rice as the Founder and Dr. Adlise Ivey Porter as the Organizing Coordinator. This program is developed by the General Coordinator, YAMS.
Visit www.whoms.org for more information.
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November 25, 2010
I will praise God's name in song and glorify him with thanksgiving. Psalm 69:30
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Saturday, December 25, 2010
For unto you is born this day in the city of David a Saviour, which is Christ the Lord.
Luke 2:11
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