Get Out of Debt Guy

Under Proposed Senate Health Care Law Prepare to Be Medically Bankrupt

Posted June 27

The Senate has just unloaded their new proposed health care law which promises to repeal and replace Obamacare.

Putting political opinions aside, a review of the numbers from the Congressional Budget Office paints a terrible picture for many American's and older citizens.

Under this new bill the brunt of the cuts is to be felt by those who can least afford to live day-to-day.

Forget the massive cuts to Medicaid. Just look at the cost of healthcare premiums to those older American's. Where people are going to find an extra $5,000-$14,000 a year for insurance that covers less items?

This is not a political battle. This is a debt and financial crisis if it passes. Already medical debt is the largest reason people file for bankruptcy. Unaffordable medical care leads to the inability for people to make ends meet. It is reported that 62 percent of personal bankruptcies were medically related. A study of past bankruptcy filings found "Most medical debtors were well educated, owned homes, and had middle-class occupations. Three quarters had health insurance."

And for an economy that runs on consumption, squeezing the pockets of great swaths of our consumers with increased medical costs is sure to have a chilling impact.

While one voice you hear claims premiums will be less under the new law, the Congressional Budget Office (CBO) reports why. They say, "Those declines would occur because the plans would cover fewer services."

Fewer covered services will lead, as it always does, to bigger bills that will have to be paid by individuals who historically have been unable to bear the costs.

As a personal note and as someone who lived in the UK and utilized National Health Service (NHS) there, I am amazed by the stories I hear claiming a single payer health care system is horrible. When I lived in England ten years ago I was covered by the NHS for all my medical needs and never received a bill for care. In addition I had a supplementary policy that gave me access to private hospital care if I needed it. The premium was $250 per quarter and that covered five people. I was just in Canada and asked about twenty different people about their view of their national medical care.

Consider this. In the United States right now there are 75 million people enrolled on Medicaid. There are currently 110 million people on Medicare. That's a total of 185 million people in the U.S. are already on a single payer government health system. That's 57 percent of the total U.S. population and people still don't think a system like that can work in the United States.

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About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.