Comments on: Wrong Way to Ease Medical Debts http://healthblog.ncpa.org/wrong-way-to-ease-medical-debts/ Health Care Policy and Reform Insights | NCPA Fri, 25 May 2012 19:57:31 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: John R. Graham http://healthblog.ncpa.org/wrong-way-to-ease-medical-debts/comment-page-1/#comment-70471 John R. Graham Fri, 23 Jul 2010 21:50:24 +0000 http://www.john-goodman-blog.com/?p=11927#comment-70471 The political need here is to ramp up the proportion of bankruptcies that are "medical" because the "research" that is cited in favor of a tsunami of medical bankruptcies is bunkum (http://tinyurl.com/n4j545). In other words, the purpose of the bill is not to protect the medically bankrupt (whatever that means) but to create more medical bankrupts. A few moments of reflection results in a number of unintended (well, perhaps not "unintended" so much as "unadvertised"). To wit: People entering financial distress incurring medical debt notwithstanding their medical needs (as Virginia suggests). People with medical debt buying houses bigger than people without medical debt. People with medical debt leveraging their houses more than people without medical debt. People who have cash to pay medical bills incurring medical debt instead. A sub-industry of financial planners designing strategies to maximize these outcomes and others which I haven't thought of yet! The political need here is to ramp up the proportion of bankruptcies that are “medical” because the “research” that is cited in favor of a tsunami of medical bankruptcies is bunkum (http://tinyurl.com/n4j545). In other words, the purpose of the bill is not to protect the medically bankrupt (whatever that means) but to create more medical bankrupts.

A few moments of reflection results in a number of unintended (well, perhaps not “unintended” so much as “unadvertised”). To wit:

People entering financial distress incurring medical debt notwithstanding their medical needs (as Virginia suggests).

People with medical debt buying houses bigger than people without medical debt.

People with medical debt leveraging their houses more than people without medical debt.

People who have cash to pay medical bills incurring medical debt instead.

A sub-industry of financial planners designing strategies to maximize these outcomes and others which I haven’t thought of yet!

]]> By: Virginia http://healthblog.ncpa.org/wrong-way-to-ease-medical-debts/comment-page-1/#comment-70439 Virginia Fri, 23 Jul 2010 17:46:50 +0000 http://www.john-goodman-blog.com/?p=11927#comment-70439 I too agree. People that are facing bankruptcy now have an incentive to go out and run up a few medical bills to qualify under the "medical debt" category. I too agree. People that are facing bankruptcy now have an incentive to go out and run up a few medical bills to qualify under the “medical debt” category.

]]> By: Linda Gorman http://healthblog.ncpa.org/wrong-way-to-ease-medical-debts/comment-page-1/#comment-70430 Linda Gorman Fri, 23 Jul 2010 16:33:24 +0000 http://www.john-goodman-blog.com/?p=11927#comment-70430 The definition of medical debt is not addressed in the linked testimony. The last time I saw a formal definition of "medical debt" it included any expense related to birth, death, drug or alcohol addition, uncontrolled gambling, loss of at least 2 weeks of work-related income due to illness or injury by anyone in the household, out-of-pocket medical bills of $1,000 in the two years before filing by anyone in the household, and mortgaging a home to pay medical bills. With criteria like this, the question is whether there are any households that wouldn't qualify as medical debtors? The definition of medical debt is not addressed in the linked testimony. The last time I saw a formal definition of “medical debt” it included any expense related to birth, death, drug or alcohol addition, uncontrolled gambling, loss of at least 2 weeks of work-related income due to illness or injury by anyone in the household, out-of-pocket medical bills of $1,000 in the two years before filing by anyone in the household, and mortgaging a home to pay medical bills.

With criteria like this, the question is whether there are any households that wouldn’t qualify as medical debtors?

]]> By: Tom H. http://healthblog.ncpa.org/wrong-way-to-ease-medical-debts/comment-page-1/#comment-70426 Tom H. Fri, 23 Jul 2010 16:15:23 +0000 http://www.john-goodman-blog.com/?p=11927#comment-70426 I also agree with Mathur, but you have to remember that most hospital charges are phoney numbers. Were I a judge I wouldn't make anyone paying his own bills pay more than the lowest price charged any payer. I also agree with Mathur, but you have to remember that most hospital charges are phoney numbers. Were I a judge I wouldn’t make anyone paying his own bills pay more than the lowest price charged any payer.

]]> By: Ken http://healthblog.ncpa.org/wrong-way-to-ease-medical-debts/comment-page-1/#comment-70424 Ken Fri, 23 Jul 2010 16:12:31 +0000 http://www.john-goodman-blog.com/?p=11927#comment-70424 I agree with Mathur. I agree with Mathur.

]]>