Archive for the ‘medical bankruptcy’ Category
Monday, May 9th, 2011
The Federal Trade Commission announced this week that according to a recent study, there has been an increase in the number of drug companies engaging in pay-to-delay deals with generic drug producers.
The FTC has denounced the actions, and with good reason: medical costs are one major contributor to many personal bankruptcy filings of U.S. citizens. So how might these types of deals affect you and your family?
- Background information: Once a drug company patents a certain drug, generic producers of drugs of similar chemical composition may file a challenge to the patent, with the goal of being able to produce a chemically similar (or identical) version to sell more cheaply.
- How the deals work: If these challenges went to court, it’s possible that they would result in judges ruling in favor of the generic producers. In order to avoid that outcome (and thus secure the market for themselves for a longer period of time), some brand-name drug manufacturers settle out of court with generic drug producers.
- Who makes money: Most settlements include an agreement that the generic manufacturer will not produce the generic version of the drug until a certain date; some settlements include a financial incentive from the brand-name manufacturer to lengthen the delay period (i.e. the brand-name manufacturer pays the generic manufacturer to delay its release of its cheaper product). The FTC found that in cases involving a payment, generic drug release waiting periods increased by an average of 17 months.
- Who loses money: The FTC notes that in 2010, 22 name-brand drugs were targeted in pay-to-delay deals. The total number of such deals reportedly jumped from 19 in 2009 to 31 in 2010 (an increase of more than 60 percent).
- What it costs us: The total dollar toll these deals have taken on Americans comes to $3.5 billion per year, according to FTC estimates. The difference comes from the fact that generic drugs can cost anywhere from 20 to 90 percent less than their name-brand counterparts. That’s a lot of money people could be putting toward paying down mortgages or credit card debt.
Are Generic Drug-Delay Deals Legal?
Anyone familiar with antitrust laws may wonder whether deals to delay competitive drugs are even legal in the U.S. The answer is a little murky. It seems that the FTC has filed a number of lawsuits against pay-to-delay agreements and has demonstrated its support of bills in Congress designed to eliminate such activity among drug manufacturers.
How can you take action? While there may not be much you can do about the problem of pay-for-delay agreements, if you’re worried about paying your medical bills, you can (and should) ask your physician whether generic versions are available any time you need medicine.
Posted in Consumer Protection, FTC, Financial Literacy, Legal Info, Medical Bills, medical bankruptcy, medical debt | Comments Off
Sunday, August 1st, 2010
Did you know that a common contributing factor to bankruptcy filings is serious illness or injury? In fact, many Americans who file for bankruptcy to escape overwhelming debt do so because of medical bills they can’t afford and didn’t see coming.
It makes sense, then, to review some key ways to spend a little money now to avoid greater expenses in the future. Here’s a look at how you can protect yourself and your family, according to a recent article from U.S. News & World Report.
When to Buy New
- Cribs and children’s furniture: Even items that seem to be in good shape can be a health risk, as safety recalls on baby items are fairly common. Rather than scrambling for an item’s history, opt for a new crib with a proven safety record.
- Car seats: While nobody likes to think about getting in a serious car accident, they do happen and can be devastating if you and your loved ones aren’t prepared. Because safety standards are improved and changed commonly, opt for a new seat for your child. Also: consider that some damaged seats may look okay. Better not to find out the hard way.
- Bike helmets: Did you know that bike helmets are built to protect the head for only one crash? A used helmet may not provide the protection you think you're getting.
- Car tires: Like many of the items on this list, tires don’t come with an accident history and might not show visible signs of serious damage. But remember: the cost of new tires is probably less than the cost of the damage that could be caused by a serious accident. An ounce of prevention here is well worth the price.
- Computer software: While buying secondhand may seem like the cheapest way to go, it could end up being a total waste of money. Many kinds of software come with serial numbers that are registered with the company – after one registration, they can’t be used again and so would be worthless. Better to buy new software for yourself and avoid the risk of throwing away money.
- Mattresses and bedding: The cost (in dollars, hours, health and frustration) of dealing with bed bugs, mold, mites, bacteria or anything else that might linger on a secondhand mattress is rarely worth the savings. And don’t think these concerns are memories of a distant past, either: even mainstream retailers have had trouble with mattress-loving critters in recent weeks.
- Shoes: If you aren’t repelled by the idea of wearing someone else’s shoes, they may seem like an intriguing bargain. But be careful: used shoes tend to be molded to someone’s feet other than your own, and their support structures can be worn out. If you plan to be on your feet a lot, you may avoid serious back problems by buying new.
Posted in Financial Literacy, Personal Finance, medical bankruptcy, saving money | Comments Off
Thursday, March 25th, 2010
The healthcare bill is now signed into law; but what does it mean for you?
We sifted through the press and propaganda to uncover how the new healthcare bill may affect you.
How the Healthcare Bill Will Affect…
The Uninsured
- $5 billion immediately goes to provide temporary coverage to the uninsured living with preexisting conditions. This measure is intended to bridge the divide until all the healthcare changes go into effect in 2014.
- By 2014, more people will qualify for Medicaid coverage, such as people who are low-income and have no children.
- By 2014, small businesses, the self-employed and the uninsured will be able to join together to buy less-expensive policies.
- By 2014, Americans who don’t qualify under a hardship plan must have healthcare insurance or face fines. Those who qualify under the hardship plan will be low-income individuals and families of four making less than $88,000.*
- By 2014, the uninsured will face fines of $95 (or 1% of the uninsured’s income). By 2015, the fines increase to $325 or (or 2% of their income). By 2016, the fines increase to $695 (or 2.5% of their income).*
The Insured
- If you buy a policy, insurance companies can’t limit your lifetime coverage anymore. This means your insurance money shouldn’t “run out” if you’re diagnosed with a serious illness.
- Insurance companies can no longer deny your child coverage because of a preexisting condition.
- By 2014, the same preexisting condition protections will arrive for adults.
- Adult children can now stay on family insurance plans until they’re 26 years old.
- By 2011, prescription drug costs are expected to drop by 50% as manufacturers drastically discount brand-name drugs. By 2020, it’ll drop by 75%.
- Those on Medicare Part D will soon receive $250 for prescription help.
- By 2014, families will receive tax breaks to help cover healthcare premiums. The amount will depend on household income.
- Six months from now, insurers must provide some specific preventive healthcare (such as immunizations) for infants, children and teens with no cost to the insured.
* Based upon House changes to the bill, which must still be approved by the Senate.
Quick Healthcare Facts
The Bill Aims to Cover 32 Million People.
That’s the combined populations of Alabama, Colorado, Illinois, New Mexico and Wisconsin, according to the Census Bureau.
Healthcare Spending = 16% of the U.S. Total GDP.
That’s $8,000 per person ($2.5 trillion), according to the Organisation for Economic Co-Operation and Development.
Medical Bills Are a Main Reason Behind Most Bankruptcy Filings
A 2009 Harvard study published in the American Journal of Medicine found that 60% of filers cited heath problems/medical bills as the main reason they filed bankruptcy.
Check Out These Illustrations of Medical Bankruptcy:
More Changes to the Healthcare Bill May Come
In order to get enough votes to pass this bill last night, the House had to make certain changes to the bill and create a reconciliation bill. The Senate still has to vote on this reconciliation bill, so there may be some bill tweaking.
Stay tuned to Total Bankruptcy for more healthcare and medical bankruptcy news.
What Do You Think: Is the Healthcare Bill a Good Deal for Americans?
Tired of politicians and reporters telling you what’s best for you? Post a comment and share your thoughts.
Sources:
Organisation for Economic Co-Operation and Development
The U.S. Census Bureau, U.S. Population Projections
TheWhiteHouse.Gov: Health Reform by the Numbers.
Harvard Study: The American Journal of Medicine, August 2009 issue
BBC News: Obama Healthcare Reforms May Pay Off for Drug Firms, March 22, 2010
Reuters U.S. Edition: Factbox: Winners, losers in House Healthcare Bill, March 22, 2010
Associated Press: House Sends Health Care Overhaul Bill to Obama, March 22, 2010
CNN Health: How the Health Care Bill Could Affect You, March 22, 2010
The Christian Science Monitor: Health Care Reform Bill 101: What Does it Mean for Kids and Families? March 22, 2010.
Posted in Bankruptcy, Bankruptcy and the Economy, medical bankruptcy, new healthcare bill, uninsured | Comments Off
Thursday, March 25th, 2010
This weekend, the U.S. House of Representatives passed a healthcare bill that could lead to substantial changes in the nation’s healthcare system. In an email to supporters sent Sunday evening (via Organizing for America), President Obama noted that the new regulations could prevent "families and businesses from plunging into bankruptcy."
So how is healthcare reform linked to personal bankruptcy filings?
The Tipping Point
Many Americans who file for bankruptcy don’t decide to do so over night; for many, it’s a drawn out and even painful process. Often, people wait until they have no choice but to file for bankruptcy, meaning that their savings and retirement funds are depleted and they have few other options.
Consider this:
- In 2001, a study found that medical costs contributed to 42.6 percent of all bankruptcy filings in the U.S.
- In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) took effect and tightened the requirements for those wishing to file for bankruptcy.
- In 2007, a new study showed the number of "medical bankruptcies" rose to a startling 62.1 percent.
Understanding "Medical Bankruptcy"
High medical bills alone may not force otherwise financially healthy individuals to file for bankruptcy. But, as the 2007 study points out, medical problems and expenses can harm individuals and families in a number of ways:
- Income loss: Injuries and illnesses that cause people to take significant time off work often mean significant pay loss as well, which can lead to unpaid bills of all stripes.
- High bills: The 2007 study indicates that, of those who were pushed into bankruptcy for medical reasons, a whopping 92 percent had bills that totaled more than $5,000 or 10 percent of their family’s pretax income.
- Loss of safety net: Even those who have enough money to cover medical bills are at risk: expensive procedures that drain savings accounts can set you up for financial disaster if any other financial roadblocks spring up.
- Limited future: Some injuries and illnesses leave permanent damage and can affect a person’s ability to find and keep work in the future, meaning that options for getting out of debt can be severely limited.
As the Obama Administration has pointed out, the introduction of more comprehensive healthcare coverage could eliminate or correct many of the problems currently linking medical expenses to bankruptcy filing.
To better understand how the healthcare reform might affect you and your family, check out this post.
Additional Resources
America’s Affordable Health Choices Act
Posted in Bankruptcy News and Events, barack obama, health care, health insurance, health reform, medical bankruptcy | Comments Off
Friday, February 19th, 2010
As healthcare costs continue to skyrocket in comparison to household earnings, many Americans are looking for ways to save on medical bills. However, not every deal is worth pursuing, and the Coalition Against Insurance Fraud reports some healthcare scams currently plaguing the nation.
Background
Because health insurance in the U.S. is most commonly linked to jobs, a high rate of unemployment means higher numbers of people are going without health coverage. And, thanks to lowered income for many households, affording healthcare can be a huge stumbling block.
According to sources, some companies are apparently taking advantage of vulnerable Americans by offering discount health products, which may not be a very good bargain.
Discount Plans vs. Health Insurance
Health insurance, as many people know, works like this: you pay a certain amount of money each month (called a premium) and when you need access to medical care, you only pay a portion of the price (called a deductible) because you’ve insured yourself against doing so.
Discount plans, on the other hand, offer discounts on the normal full price of medical services. They are usually restricted to specific caregivers and specific medical facilities. After receiving consumer complaints about some discount plans, investigators reportedly found that discount plans tended to:
- Overstate benefits: Advertisements for some plans misled consumers with claims about potential savings. For example, a plan might advertise itself as offering
savings up to 60 percent,
but provide a 60 percent discount on only one service.
- Offer insufficient savings: Those with chronic health problems or who make frequent doctor’s visits may see little or no financial benefits from these plans.
- Provide incorrect information: Some plans apparently guaranteed access to medical professionals who were no longer affiliated with the plan.
Making the Decision
If you don’t have access to or cannot afford health insurance, you may benefit from signing up for a discount plan – the important thing to do is research the plan before committing to it.
These precautionary steps to anyone considering such a plan:
- Read everything. Look at the forms you’d be required to fill out and scrutinize the fine print. Make sure you know exactly what the plan includes – and leaves out.
- Don’t jump the gun. Before opting out of another insurance plan, make sure the new plan you’re looking into will offer the kind of protection you need.
- Make some calls. Ask for the list of physicians that you’d have access to and call to make sure they’re still participating.
Remember: commercials tell you only what they want you to know so do a little digging before choosing any new medical product.
Additional Resources
Medical Bills and Bankruptcy
Posted in Financial Literacy, health insurance, medical bankruptcy, medical debt, medical scams | Comments Off
Tuesday, January 12th, 2010
A recent report from the Milwaukee Journal-Sentinel Online describes a potential complication that might arise during a bankruptcy filing. Here’s a look at what happened and what it might mean for other filers.
Your Records in Chapter 13 Bankruptcy
When you file for Chapter 13 bankruptcy, you’re agreeing to the following:
- Committing to a repayment plan that lasts three to five years and satisfies part or all of your secured debt
- Completing two courses (the pre-filing credit counseling briefing and the pre-discharge debtor education course) designed to help you improve your relationship with money and credit
- Making public your records of debts and payments
It’s the last item on this list that has proved problematic. In the case of some Wisconsin bankruptcy petitioners, it seems, debt and payment information in medical bills that became part of the public record included details about doctor’s visits, procedures and medicines they used.
Now, according to sources, several Wisconsin residents have filed class-action lawsuits in state and federal court against Aurora Health Care Inc., the company reportedly responsible for submitting the detailed medical information.
Beyond Embarrassment
Bankruptcy filers who see their medical history become part of public record may have reason for embarrassment, but, according to reports, that isn’t the only reason this lawsuit has gotten attention.
Certain information (for instance, about treatment for past injuries) could prevent a filer from getting hired at a job in the future or pave the way to medical identity theft. And privacy laws often protect the disclosure of such information.
Should You Be Worried?
The good news here is that, while medical records included as part of a bankruptcy filing may have the potential to hurt your career or cause you embarrassment, the odds of anyone besides your lawyer, your bankruptcy trustee and the judge on your case seeing them is slim.
After all, such information appears as part of the loads of paperwork involved with filing a bankruptcy petition – sifting through to find such details would be a daunting task.
Still, this story highlights one more reason why enlisting the help of an attorney when you decide to file for bankruptcy protection can be a crucial element of making sure you receive the protection and fresh financial start you’re seeking.
Additional Resources
2009 Medical Identity Theft Final Report (PDF)
Posted in Bankruptcy Courts, Chapter 13 Bankruptcy, class action, medical bankruptcy, milwaukee | Comments Off
Friday, December 4th, 2009
Thanks to the health care overhaul bills currently working their way through the U.S. Senate and House of Representatives, the high cost of health insurance in America is on the public’s mind. And now, with a key provision of the stimulus bill expiring this month, another aspect of the health care dilemma has come to the surface.
Job Loss and Health Insurance
Because many Americans get medical insurance through their employers, job loss can be a double blow, meaning the loss of income as well as coverage. To address this concern, lawmakers included provisions for health insurance in the stimulus bill passed in February:
- Subsidized coverage: The stimulus provided funds to reduce COBRA payments by 65 percent for those who wanted to keep their company’s health coverage after losing their jobs.
- Limited offer: Naturally, the government assistance came with boundaries: to be eligible, people must have been laid off between September 1, 2008 and December 31, 2009. Further, subsidized coverage only lasts for nine months.
Because the measure went into effect in March of this year, thousands of unemployed Americans are now facing huge jumps in the cost of their health coverage.
In fact, sources indicate that the average affected family will see their costs soar $722 per month – from $389 to $1,111. In many states, that amounts to the vast majority of unemployment payments; in some states, it exceeds possible unemployment payments.
Hope on the Horizon: Bills in Congress
Luckily, the situation is not completely without hope. In fact, the Associated Press reports that Congress is currently considering bills that would add an additional $100 billion to unemployment benefits (including the COBRA subsidy).
Here’s a numerical breakdown of the proposed legislation:
- $85 billion would be funneled toward extending emergency unemployment payments
- $15 billion would fund the expanded health care coverage
In 2007, when unemployment hovered around 4.8 percent, about $43 billion was reportedly spent on unemployment costs.
While some measures of the economy suggest we’re pulling out of the worst of the recession, many experts still expect unemployment levels to remain high for another year or so, which means these problems likely won’t disappear any time soon.
Additional Resources
Special Report: Expiration of COBRA Subsidy (PDF)
Unemployed and Uninsured (PDF)
Posted in health insurance, medical bankruptcy, unemployment | Comments Off
