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A major study proves that illness and medical bills are at the top reasons for bankruptcies
Unemployment has reached record levels and retirement funds are disappearing fast for many people during this recession. Prices of homes have plummeted to record lows. Statistics according to the U.S administrative office indicated that, the number of U.S. bankruptcies filed during the first three months of 2009 increased 34.5 percent over the same period in 2008. In addition, what’s surprising is that study done by Harvard which was published in august 2009 which reveals financial troubles began hitting Americans even before the recession was officially recognized. It was also found that the top causes of bankruptcies were medical bills and illness related problems.
The investigators looked at random people about 2,314 bankruptcy filers in 2007, they investigated their court records and then interviewed 1,032 of these financially troubled folks. Thus relying on these same definitions both 2001 and 2007, the researchers reach a consensus that these bankruptcies were caused by medical problems which had soared by almost 50 percent during those current years. In fact, the chances a bankruptcy filed related to medical cause were 2.38 higher in 2007 than in 2001.
And innumerable families who had medical insurance were under-insured, leaving them accountable for thousands of dollars in medical payments they couldn’t afford to pay. In fact, out-of-pocket medical charges averaged under $18,000 for those who acquired private insurance and got bankrupt due to medical costs. Uninsured patients dealt with $26,971 in out-of-pocket expenses.
The study’s authors suggest that almost all insurance is related to employment, so a health related illness can prompt both losses of a job and of health insurance coverage. Of course, losing a job due to the downfall of an economy also typically means losing health insurance coverage.
Regrettably, according to another study, Americans are not living healthy regardless of the fact that it can save their money and life. What’s more, the research reveals that there’s in fact a decline in healthy living, particularly amongst people in their middle age.
Investigators compared the results of two large studies of Americans conducted between the years of 1988 and 1994 and between 2001 and 2006. The research concluded that during the intervening years, there was a considerable increase in the percentage of adults between the ages of forty and seventy four who reduced their physical exercise level and also added additional weight. The research subjects were in taking far more alcohol and eating fewer fruits and vegetables, as well, as the years rolled by.