Posted on Mon, Jul 13, 2009
Medical debt is a contributed factor in more than half of all bankruptcies filed in the United States. Many family health insurance policies prove to be safety nets with gaping holes.
When an individual obtains family medical insurance, they believe they are protecting themselves and their family both medically and financially. The cold hard numbers, however, cannot be ignored. Not every family medical insurance policy is adequate to provide true peace of mind - or to provide sufficient coverage in the event of a serious illness.
A recent Harvard study shows that family health insurance isn't necessarily protection from financial ruin. Of all the bankruptcies filed in the United States in 2007, the study concludes, medical debt contributed to 62% of them.
The study was a joint research project carried out by Harvard Medical School and Harvard Law School. It encompasses an in-depth study of bankruptcies brought on by medical bills. Questionnaires answered by bankruptcy filers, along with their court records, made up the data used to reach the study's conclusions.
Contrary to common thinking, medical bankruptcy isn't limited to those without family medical insurance. For the under-insured, thousands of dollars of out-of-pockets costs can lead to bankruptcy. In fact, of those who faced medical bankruptcy, nearly 80% actually had family medical insurance at the start of their illness but were nonetheless buried in medical bills.
The initial Harvard study was conducted in 2001. Since then, medical bankruptcies have increased by 50%. The lead author of the study makes the bold statement that "Unless you're Bill Gates, you're just one serious illness away from bankruptcy."
An outcry over family medical insurance policies with meager coverage for serious illnesses was sparked by the results of the study. The obvious question that arises from the spotlight on the wide scale problem of inadequate insurance is whether government-mandated healthcare reform is the answer. It's a question that continues to raise heated debate.
One thing is for sure: the problem of woefully inadequate family health insurance won't be remedied solely by any government-run healthcare program. What the Harvard study and others like it make clear is that the root cause isn't whether or not you have insurance. The real issue lies in the extent of the coverage.
Patient advocates are urging lawmakers to include provisions in the final legislation that would guarantee a base level of coverage to health insurance policy holders. Solutions being considered by the House and the Senate include minimum standards for family medical insurance and other health insurance coverage as well as a cap on out-of-pocket expenses.
Many argue that government-run healthcare is an extreme solution to a problem that could be handled through specific legislation that targets limited benefit health insurance. They point to the obvious conclusion presented by the study that health insurance in and of itself is not the answer. Having family medical insurance did not save hundreds of thousands of individuals from bankruptcy.
Those shopping for family medical insurance should also be aware of the fine print in their policies. The overall quality of family medical insurance should be considered. Premium costs are only one factor that should go into the equation. If and until any minimum coverage standards are implemented, family medical insurance shoppers should take the time to educate themselves. Careful research and scrutiny of police limitations is key to securing family medical insurance that truly protects you and your family.
Posted on Fri, May 22, 2009
The struggle for affordable health care is faced by millions of American families. As medical costs continue to rise, affordable medical insurance becomes more difficult to find. Without affordable health coverage, families run a much higher risk of a small health problem turning into a nightmare, with both medical and financial consequences.
Families and individuals can still find affordable medical insurance and it may be more important now than ever before. The President and Congress are both announcing plans for a health care reform bill to be put to a vote in July 09. People who are without insurance after a reform plan is instituted will find themselves subject to a new policy with a new set of rules. No one knows yet what that policy might include, so it makes sense to do your research now and make your own decisions about affordable health care.
The only sure way to compare medical insurance plans is to look at the premium amounts, benefits, co-pays and deductibles and find the combination of numbers that fits your needs and your budget.
Of course, you need a premium amount you can afford or you will wind up being unable to keep the policy in effect. The premium amount is the ongoing fee you pay in exchange for the benefits you receive.
Benefits, the money the insurance company pays when a claim is approved, vary widely between policies and companies. Some policies only pay for hospital stays and emergency care. Others pay for routine doctor visits and preventative care as well. Some plans will accept clients with pre-existing medical conditions and others will not. A medical insurance policy may include prescription drugs or you pay need separate coverage for medications.
You may need to pay a co-pay with your insurance. A co-pay is the money you must pay yourself at the time a medical service is received. The co-pay amount will vary between different types of services. You may pay a $10 co-pay for an office visit, but pay $40 for an emergency room visit. Generally, the higher your co-pay, the lower your premium will be.
Deductibles are another expense involved with affordable health care. The deductible is the dollar amount of covered medical services you need to pay yourself before the insurance company begins to kick in on the bills. The deductible you choose will have a significant effect on how affordable health coverage will be for yourself or your family. The higher your deductible, the lower your premium cost will be. It is important to understand the terms of your deductible. With some medical insurance, the deductible amount must be met for each member of the family. Other policies just have one deductible amount for the policy, no matter how many family members are included.
Affordable health insurance isn’t always easy to find, but by being able to choose your deductible and perhaps the co-pay amounts you are responsible for, you may be able to affect the premium amount you pay, leaving you with an affordable health coverage plan that provides quality care at a reasonable cost.