Despite promises, medical bankruptcy still as high with the ACA

Rasselas

Former Staff
Feb 2010
69,575
45,455
USA
She probably has stashed those insurance lobby checks in an account in the Caymens
I'm pretty sure that would be hard to pull off. It's not like that could be her only motivation. Whatever way we get to health care for all, it probably runs through some gradual change. Too many oxen to gore all at once.
 
Nov 2015
5,926
1,925
UK
I'm betting that doesn't touch on the many many of the ANCILLARY expenses (for us).
I'm not really conversed in the American system but you probably have different levels of cover meaning paying out many thousands for treatment on top of your insurance claim.

In the UK, when I earn less I spend less and therefore contribute less tax. The more I earn, the more I buy and the more tax I've contributed. But either way, my NHS cover is exactly the same. In addition, I could decide to pay into a private health insurance scheme such as BUPA.
 
Mar 2012
55,710
37,181
New Hampshire
I'm not really conversed in the American system but you probably have different levels of cover meaning paying out many thousands for treatment on top of your insurance claim.

In the UK, when I earn less I spend less and therefore contribute less tax. The more I earn, the more I buy and the more tax I've contributed. But either way, my NHS cover is exactly the same. In addition, I could decide to pay into a private health insurance scheme such as BUPA.
Is it like a flat tax there? How does it work? Does everyone pay the same percentage or does it go up?
 
Nov 2015
5,926
1,925
UK
Is it like a flat tax there? How does it work? Does everyone pay the same percentage or does it go up?
There are many areas where you pay tax. Many goods attract 20% VAT, you guys have state tax. You pay tax on income, the more you earn, the greater you pay. There's 5% tax on electric, gas and heating oil. Stamp duty when buying a house. Petrol and diesel has some 70% tax duty attached so the more you buy and drive, the more duty you've paid. Alcohol has duty attached.

So obviously the more you spend and buy, the more you contribute in tax.

Someone in the UK, someone earning £15,000 receives exactly the same treatment as someone on £50,000, £100,000 or even £1m.

In the states, say you pay $500 per month insurance. What happens if you drop wage from $50,000 to $20,000 per year? I assume your healthcare changes.
 
Likes: bajisima
Mar 2012
55,710
37,181
New Hampshire
There are many areas where you pay tax. Many goods attract 20% VAT, you guys have state tax. You pay tax on income, the more you earn, the greater you pay. There's 5% tax on electric, gas and heating oil. Stamp duty when buying a house. Petrol and diesel has some 70% tax duty attached so the more you buy and drive, the more duty you've paid. Alcohol has duty attached.

So obviously the more you spend and buy, the more you contribute in tax.

Someone in the UK, someone earning £15,000 receives exactly the same treatment as someone on £50,000, £100,000 or even £1m.

In the states, say you pay $500 per month insurance. What happens if you drop wage from $50,000 to $20,000 per year? I assume your healthcare changes.
US has Medicaid if one falls below a certain level of income. Interesting that you pay on all sorts of things not just income. I hadnt known that about the NHS. Not sure that would work here as some states have no sales taxes and others are all over the place for percentages.
 
Jun 2013
17,743
15,333
Here
A new study shows how the Affordable Care Act (ACA) has failed to solve one of the major crises in the American for-profit health insurance system that it was supposed to help eradicate: bankruptcies related to high medical bills and other healthcare-related costs.

The Consumer Bankruptcy Project (CBP) examined 910 bankruptcies that were filed between 2013 and 2016 and found that, similarly to before the ACA was passed in 2010, 66.5 percent of the bankruptcies were brought about by medical bills families were unable to afford or income loss due to illnesses. About 530,000 American households continue to see their finances wiped out each year due to medical costs, according to the report, which was published in the American Journal of Public Health.

"Unless you're Bill Gates, you're just one serious illness away from bankruptcy," said Dr. David Himmelstein, the study's lead author. "For middle-class Americans, health insurance offers little protection. Most of us have policies with so many loopholes, copayments, and deductibles that illness can put you in the poorhouse. And even the best job-based health insurance often vanishes when prolonged illness causes job loss—just when families need it most."

The report "found no evidence that the ACA reduced the proportion of bankruptcies driven by medical problems: 65.5 percent of debtors cited a medical contributor to their bankruptcy in the period prior to the ACA’s implementation as compared to 67.5 percent in the three years after the law came into effect," PNHP said in a statement.

Despite Promises of ACA, Study Shows Two-Thirds of Personal Bankruptcies Still Caused by Illness and Medical Bills
The American Journal of Public Health (AJPH) from the American Public Health Association (APHA) publications

As with most things in this day and age, there are disputes over information and what did or did not happen and why. There are also many questions left unanswered and people then tend to fallback on partisan political stances. Since most people, no matter what they do, have some manner of political position and so many things are automatically related to political position, it has become really hard to read through the lines, other than carefully researching and re-researching information, methodologies for information gathering and conclusions.

The following disputes your articles and then there are the nibbles that have been taken out of the ACA, in part because some people see any success in the ACA or any other universal care system as threatening to their profits, in some cases, quite massive profits. How to sort through that, is sometimes very difficult. Who to believe, who not to believe? Perhaps the best way to look at anything is to research not just corroborating evidence, but evidence to the contrary and try to figure out where something to the truth, might actually lie.

How the Affordable Care Act Drove Down Personal Bankruptcy

The Burden of Medical Debt: Results from the Kaiser Family Foundation/New York Times Medical Bills Survey

Healthcare Reform News Updates