Arkansas Blog: Broken by health debts

Another of the Arkansas Blog's wise readers calls attention to a New York Times article today on how even health insurance isn't a safety net. Most of those (75 per cent) pushed into bankruptcy by health care debts had health insurance, the article notes. In short, coverage can be so poor (no matter how expensive), that a medical crisis is still impoverishing.

There is, naturally,a local angle and not just in those Arkansans crushed by the cost of health care, insured or not. As our reader points out, U.S. Sens. Mark Pryor and Blanche Lincoln endorsed bankruptcy "reform" legislation in 2005 that makes it hard to discharge such debts. He writes:

The law prevents regular citizens from getting relief from medical debts without entering a creditor-run payment plan.

It is amazing to me that no one has asked Sen. Lincoln why her views on bankruptcy have changed all of a sudden. On her website's issue and legislation section on health insurance, she now says this: "Americans without health insurance suffer worse health and die sooner than those who do have health insurance. Working families need help with this problem. In Arkansas, the number one cause of bankruptcy is high medical bills."

But when she supported the bankruptcy bill in 2005, she disputed a Harvard study that said most personal bankruptcies were caused by high medical bills, soaring health costs and lack of insurance. Instead, she said that credit card companies and the banks, who have been bailed out by the government and are now are raising interest rates for low-income borrowers, needed protection from bankruptcy filers.

"Today, the evidence shows that bankruptcy proceedings are being manipulated by some to avoid debts even when they have the ability to pay. That’s just wrong. Unfortunately, lenders have to be protected by laws when there is no honor," Lincoln said in 2005.

The other huge issue is that under the former bankruptcy rules, many people could protect their most valuable asset -- their homes. Blanche's support of Bush's 2005 bankruptcy bill makes its virtually impossible for people behind on their bills or out of work to prevent foreclosure of their homes, which is the foundation of the worst economic downturn since the Depression.

Comments

I'm thankful that the NYT and AT now know what Michael Moore was telling the nation in his 2006 film "SICKO."

When you find ANY southern U.S. Senator who actually will do something for the people rather than work full time for corporate America please let us know. Otherwise, I'm going back to sleep.

Posted by: eLwood | July 1, 2009 11:09 AM

If Bankruptcy reform is going to be mentioned than our Vice President deserves top billing. At the time of the vote, IIRC, he was the number one recipient of money from the finance/credit card industry. In addition, he was one of 4-5 Dems that voted against every amendment that attempted to ease the impact of the law on people with unexpected medical bills, deployed soldiers, etc.

Here are the top ten most bribed Senators by Finance/Credit Card Industry: Johnny Isakson (R-GA- $3,341,524), Jon Kyl (R-AZ- $3,708,608)
Evan Bayh (D-IN- $3,987,896), John Cornyn (R-TX- $4,314,592), Richard Shelby (R-AL- $4,384,492)
Max Baucus (D-MT- $4,633,243), Kay Bailey Hutchison (R-TX- $4,685,238), Lamar Alexander (R-TN- $4,847,225)
Mitch McConnell (R-KY- $5,013,778), Arlen Specter (D-PA- $5,753,310), Joe Lieberman (I-CT- $9,981,924)
John McCain (R-AZ- $32,423,813)

POS Arlen Specter is likely to be challenged by Joe Sestak...An excellent chance to get rid of Specter, IMO.

Posted by: HenryS | July 1, 2009 11:50 AM

"If Bankruptcy reform is going to be mentioned than our Vice President deserves top billing."

I agree, but he's not in the Senate now nor is he one of our Senators.
Miz Blanche on the other hand is and she even has a facebook page (I'm sure it is just a PR ploy and run by a staffer) but lately each time a post is made there are Arkansans asking about her lack of support for a public option.
I wish she twittered, now that would be fun to respond to all day long.

Her facebook page is at the name.

Posted by: Any*Mouse | July 1, 2009 11:56 AM

You made your point HenryS.
We have the best Senators that U.S. Corporations can buy.

Posted by: eLwood | July 1, 2009 12:02 PM

Miz Blanche: "That's just wrong."
Seems I've heard these three words from the esteemed lady -- over and over again. Doesn't matter what the subject is. It's just wrong.
What's wrong is the senator doesn't have a clue about life away from the plantation or outside the political sphere.

Posted by: Doigotta | July 1, 2009 12:03 PM

"That's just wrong" is always preceded by "Fight."

Mizz Blanche is gwana fight fo you folks.

See da bitch fight for every corporate dollar that comes her way.

Posted by: eLwood | July 1, 2009 12:05 PM

You made your point HenryS.
We have the best Senators that U.S. Corporations can buy.
*********
I hadn't thought of that but you may be right, I didn't vote for (gang of 16) Pryor in '08, I voted Green(?) and I won't vote for Lincoln, but they are probably better than a wing-nut, christianist Rethug.

If I did have a point, it was try to accomplish the possible and remove Arlen Specter.

Posted by: HenryS | July 1, 2009 12:09 PM

I agree, but he's not in the Senate now nor is he one of our Senators.
**********
I mentioned Biden because he still might have some influence as VP and it's good to know who the enemies are.

Posted by: HenryS | July 1, 2009 12:13 PM

Three cheers for the reader who handed this off to Max and to Max for posting it.

Now it should also be made clear that things were made worse by every single AR Senator and congressman this year in terms of their votes in re everything from protection of banks (and insurance companies) and no protections of those who hold fraudulent mortgages. And the same can be said about all and protection of banks over credit card holders... fees and interest rates.

The criminals are still in charge and EVERY single Arkansan in DC is helping them, not us.

Americans are cowards and an easy willing mark for taking this over and over again.

Posted by: Eureka Springs, AR | July 1, 2009 12:19 PM

At a time like this the words of my old Italian uncle come to mind. When talking about politicans he often said they belonged to a mob; and their mob was protected by their laws.

Posted by: Janus | July 1, 2009 02:13 PM

There are many things wrong with the 2005 bankruptcy law however these 2 statements:

"The law prevents regular citizens from getting relief from medical debts without entering a creditor-run payment plan" and,

"2005 bankruptcy bill makes its virtually impossible for people behind on their bills or out of work to prevent foreclosure of their homes"

are simply incorrect.

Posted by: GPR | July 1, 2009 02:28 PM

Having lived under single payer/national health insurance in both Austria and the United Kingdom, I can't understand anyone's objection to it.

Posted by: Polecat | July 1, 2009 02:38 PM

I noticed a new ad on the AT site http://haarm.org

Healthy Americans Against Reforming Medicine. I hesitate to mention it here because CatEater and Severe may think it's a serious attempt to save the poor beleaguered health insurance companies from the socialist attacks.

Posted by: YossarianMinderbinder | July 1, 2009 04:45 PM

Yossarian that's one helluva link! I hope everyone reading this will check it out.

Posted by: eLwood | July 1, 2009 10:15 PM

Arkansas Blog

Broken by health debts

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