Study concludes US bankruptcy increase tied to medical issues; PBGC "weaknesses" growing
June 30, 2009
According to a recently released study, “Medical Bankruptcy in the United States, 2007: Results of a National Study,” medical problems contributed to 62% of all bankruptcies in 2007, and that between 2001 and 2007, the proportion of all bankruptcies attributable to medical problems increased almost 50%.
78% of those who filed bankruptcy as the result of medical issues were insured, and 60.3% had private coverage. But, according to the study, those with coverage often discovered they were underinsured, facing significant out of pocket costs.
The study was co-authored by David U. Himmelstein, M.D., Department of Medicine, Cambridge Hospital/Harvard Medical School, Cambridge, Mass; Deborah Thorne, PhD, Department of Sociology, Ohio University, Athens, Ohio; Elizabeth Warren, JD, Harvard Law School, Cambridge, Mass.; and Steffie Woolhandler, MD, MPH, Department of Medicine, Cambridge Hospital/Harvard Medical School, Cambridge, Mass.
In another report, one issued by the GAO, it was found that current PBGC’s governance and financial weaknesses may place corporate pensions at risk as bankruptcies mount, with the possibility that the pensions of 1 million U.S. auto industry workers could be transferred to the PBGC in the next couple of years, adding to the PBGC's increasing burden of unfunded liabilities. These “weaknesses” of the PBGC have been longstanding concerns of Congress and its Government Accountability Office.
It is likely this issue will attract significant attention, and possible Congressional reforms, in the near future.
In my first article for Debt 3, I noted that there are seven factors that truly “great” associations exhibited. The first is a customer service culture – having a keen understanding of what members want and need and responding effectively to those wants and needs. In January, CLLA conducted an online survey of its members to better understand who we are as an organization and to find some answers to those important customer service questions – the first and vital steps to becoming a truly great association.
As a sponsor of the American Board of Certification, the CLLA encourages certification of attorneys in business bankruptcy, consumer bankruptcy and creditors' rights law.