Thursday, July 23, 2009

The Course of Medical Bankruptcy: Why Getting Insurance at Work Doesn't

Harvard Law Professor Elizabeth Warren analyzes medical bankruptcy.

Surprisingly, most of those entering medical bankruptcy had health insurance which covered their problems at the beginning of their illness. Inevitably, such individuals lose their job halfway through their illness (perhaps due to their long absences from work, or an inability to continue heavy labor after developing a heart condition). Employment based coverage lapses. Attempts to secure new coverage, even after finding a new job, ultimately fail due to preexisting conditions.

Employer based health insurance is a very bad idea, regardless of how many payers are in the system. Denials due to preexisting conditions seem the other major source of trouble.

Maybe a public option will address these problems, catching those who are being pushed out of the system.