Election 2008: What’s At Stake?

The New York Times reports that bankruptcies were up 18 percent in February from the previous month, and 28 percent from the same time the previous year.  With all the economic gloom and doom we’ve been hearing, this may not sound surprising, but interestingly, the housing market and gas prices are probably not the biggest culprits.  In fact, medical costs account for half of all bankruptcies.  In our world of rising insurance costs and uncertain coverage, a medical crisis becomes a financial crisis almost immediately.  The added expenses, in the form of co-pays and prescription costs, eat away at the monthly budget.  And employer-based health coverage, the most common form of health insurance for Americans, becomes vulnerable at the exact moment it’s most needed.  A sick person can’t always work, but if he loses his job he will lose his coverage as well as his income.  Medical costs also account for 15 percent of second mortgages, so some of the fallout from the mortgage crisis may also be the result of loans taken out to fill the gap during a personal emergency.  Bottom line: stay healthy.