On the Hill, Elizabeth Edwards Calls Attention to Medical Bankruptcies

By Ed O'Keefe
Elizabeth Edwards today lent her political star power to a underlooked element of the ongoing health care debate: the rise in bankruptcies related to health care costs.

A recent Harvard study concluded that at least 62 percent of bankruptcy debtors can trace at least part of their financial hardship to medical debt. Data from 2007 also indicate a 49 percent increase in medical bankruptcies as a proportion of all bankruptcy filings between 2001 and 2007. The total number of medical-related bankruptcies is likely higher; study data was compiled before the recession began last year.

Lawmakers met to review the medical bankruptcy study as their colleagues continue crafting legislation to overhaul the nation’s health care system.

“Successful health reform must not just make health insurance affordable, affordable health insurance has to make health care affordable,” Edwards told lawmakers at a morning hearing called by the House Judiciary subcommittee on commercial and administrative law.

The former bankruptcy attorney, breast cancer survivor and wife of former senator and two-time presidential candidate John Edwards now serves as a senior fellow at the Center for American Progress, focusing primarily on health care issues. She urged lawmakers to quickly address health care reform efforts, reminding them that a growing number of Americans make difficult financial choices thanks to high medical bills. She cited a recent study that revealed many homeowners going through foreclosure cite medical expenses as a reason for falling behind on mortgage payments.

Elizabeth Edwards, senior fellow at the Center for American Progress Action Fund and wife of former Sen. John Edwards (D-N.C.), testifies before the House Subcommittee on Commercial and Administrative Law about health care reform on Tuesday. (Chip Somodevilla/Getty)

“To ignore the fact that medical costs are an underlying problem of the economic meltdown we’ve experienced would be to turn a blind eye to a significant problem that we can solve,” she said.

Edwards was joined by Steffie Woolhandler, a co-author of the Harvard study who sharply criticized current reform efforts.

“Private insurance is a defective product that leaves millions of middle-class families vulnerable to financial ruin. Unfortunately, the health reform plan now under consideration in the House would do little to address this grave problem,” Woolhandler said.

Republicans and other witnesses poured water on Woolhandler’s study, suggesting other financial issues have caused most bankruptcies.

“Rising healthcare costs are clearly an area of growing concern, and there is an urgent need to tackle the issue. At the same time, we should recognize that families are being pushed to the brink of bankruptcy for a multitude of reasons,” said Aparna Mathur, a research fellow with the American Enterprise Institute. She suggested that mounting credit card debt, divorce or unemployment is more likely to cause serious financial hardship.

The hearing took place as negotiations continue on both sides of Capitol Hill. Last night , a teach-in that included a section-by-section review of the legislation led by House staffers.

By Ed O'Keefe | July 28, 2009; 1:11 PM ET
Categories: Daily Dose Share This: E-Mail | Technorati | Del.icio.us | Digg | Stumble Previous: Health-Reform Foes Draw Industry Donations
Next: Drugmakers' Group Has $100 Million for Possible Ad Campaign on Health-Care Reform

Comments

Weird that all these lawyers don't ever mention tort reform. Elizabeth Edward's skank of a husband was a malpractice lawyer and once profited $20 millions from the death of child.

Tort reform. The Washington Post shills should google it.

Posted by: Cornell1984 | July 28, 2009 4:06 PM | Report abuse

Surely Ms. Edwards is confident that Obamacare would prevent personal bankruptcies. However, what she doesn't discuss is that fact that Obamacare will cause the bankruptcy of the United State and private insurance companies.

I wonder if Ms. Edwards is willing to pay the 10% or more in tax hikes her and her pseudo-husband will have to shell out, or if their income will conveniently fall below the tax bracket that will feel the initial pain of Obamacare.

Posted by: Russtinator | July 28, 2009 4:21 PM | Report abuse

WaPo REALLY NEEDS TO CHECK SOURCES

This dreck --

"A recent Harvard study concluded that at least 62 percent of bankruptcy debtors can trace at least part of their financial hardship to medical debt."

Sends the reader to the MDs-for-single payer site, headed by Dr. Himmelstein of Harvard Med.

That alleged "study" was written by Dr. Himmelstein of Harvard Med.

WOW! What cool, objective analysis! And the co-author, Prof. Warren of Harvard Law, made her career, attacking bankruptcy law.

I can always rely WaPo to miss the facts! Great job!

Posted by: russpoter | July 28, 2009 6:03 PM | Report abuse

I'm a court reporter, and time after time after time, 9 times out of 10 (if not more), when people are asked why they stopped treatment after the car accident or the slip and fall or any other occurrence where they were hurt, the answer is "I didn't have insurance." I hear these stories every single day and it's sad. And, by the way, I don't have health insurance either. Good for Elizabeth for speaking out on this, and so eloquently.