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Friday, July 10, 2009

Socialized Health-Care Not Paying Off

There have been many claims that medical costs have led to bankruptcies across the United States. As a result, advocates of socialized medicine argue that the mixed public-private health insurance system in the United States causes many Americans to become financially bankrupt, and that this would not occur if the US adopted the Canadian health system.

The Fraser Institute, in a study, indicates that Canada has a higher rate of bankruptcy than the U.S. Medical costs were a contributing factor in only 17% of total US bankruptcies, and only 12 to 13% of the total debt among U.S. bankruptcy filers who cited medical debt as a factor.

Additional research, they say, also indicates that medical reasons were the primary cause of bankruptcy by approximately 15 percent of bankrupt Canadian seniors (55 years of age and older).

1 comment:

A-Mom said...

I have two personal examples of financial hardship due to medical problems: One of a family who unwisely made a major, unnecessary purchase and incurred even greater debt after the husband couldn't work because of a health problem. They ended up requiring gov't assistance and declaring bankruptcy. The second is a family where two members became sick, with the loss of half the family income and health insurance. Savings and help from extended family and church got them through the difficulty. Since unexpected illness comes to many, these examples show that wise planning and kind charity often provide more help than any government assistance could.