Pawtucket Times - Law Would Ease Medical Debt

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They didn't see it coming: a son born with Cystic Fibrosis, a debilitating bout with Lyme Disease, the sudden death of a spouse, a cancer diagnosis. But the four people who shared their personal stories with U.S. Sen. Sheldon Whitehouse on Monday were linked by an increasingly common problem - crippling medical debt that threatened to push them into financial ruin.

Whitehouse and the four speakers gathered at the Blackstone Valley Community Action Program (BVCAP) to call attention to the growing problem and speak about the toll it takes on families.

The Congressman also announced that he has introduced legislation to assist people struggling under the weight of such medical debt, particularly when it comes to protecting their homes from bankruptcy.

According to Whitehouse, the Medical Bankruptcy Fairness Act of 2009 (S.1624) would make the bankruptcy process quicker and less expensive for filers with high medical costs, and increase their chances of retaining their homes.

The bill would allow the retention of at least $250,000 of home value through the bankruptcy process, helping families incurring high medical bills to keep their homes.

The bill would also remove requirements such as credit counseling, which Whitehouse maintains is unnecessary when the bankruptcy is caused by a medical crisis and not poor financial management, and would waive the so-called "means test," making the filing process quicker and less costly.

This provision would also help ensure that people have the ability to file to have their debts discharged in Chapter 7, the most efficient and simplest bankruptcy process available, according to Whitehouse.

Vincent Celig, BVCAP's director, said the issue is timely because his organization is seeing an increase in people who are in danger of foreclosure, and many of them attribute large medical bills as being at the root of the problem.

"We've always served the low income population and now we're seeing more moderate income people who are having financial difficulties. We're seeing people we never really saw before," Celig stated. "The problem is striking across income lines. These people are working, but one event such as a medical emergency can send them over the edge." He added that BVCAP staff try to do what they can to provide assistance, but options are limited.

Whitehouse said that a recent Harvard University study found that illness and medical bills were linked to over 62 percent of personal bankruptcy filings in 2007. Referring to the cases of the four speakers and their personal suffering, he said, "You see one tragedy that happens, and then it cascades into a second tragedy that cascades into a third tragedy, and the system stands by instead of supporting."

Whitehouse said he hopes that health care reform will deal with this issue, but until that happens, it is important to solve the bankruptcy problem. "Nobody should lose their home because they got sick."

One of those with firsthand experience was Kerry Burns, a Coventry resident whose son died of complications from Cystic Fibrosis. Burns relayed how, when their son's condition worsened, she and her husband gave up their jobs to be by his side. While the couple's health insurance covered the majority of the medical costs, they fell behind on their other household bills and eventually lost their home. The Burns are now involved in bankruptcy proceedings. "My son got sick and I did what I had to do as a parent," said Burns. "I have no regrets about taking a year off from work," she stated.

Vicki Giangrasso told of having a well-paying job as a computer technician until she began experiencing medical problems that were eventually traced to Lyme Disease. After suffering from symptoms such as fatigue, muscle aches and blurred vision and a series of wrong diagnoses, she lost one job and then another, and eventually had to give up her home as the bills began to pile up.

Christin Cronan found herself a widow with four children in 2005 after her husband suffered a massive heart attack. Within six months, she lost her medical insurance, and then incurred several large medical bills due to an asthmatic son who required frequent medical care. She told Whitehouse that while she currently owns a home, she fears she is on the brink of losing it, and is hoping to avoid filing for bankruptcy.

Adam Vincent, a recent college graduate, was diagnosed with cancer just a year into his first professional job. He had limited health coverage, but due to needed surgery and a series of expensive medical testing, found that he quickly racked up a $20,000 medical bill that was far beyond what he could afford to pay. He even opted against getting chemotherapy treatment that had been recommended as an additional preventative measure, in large part due to the cost. "You start thinking about your money situation more than your health situation," he told Whitehouse.

Whitehouse said that all of the stories illustrate the need for a short-term solution, such as through the legislation he is proposing, as well as a broader effort at health care reform. He said he is particularly concerned about the types of bankruptcy situations that arise from medical situations such as the four speakers described, and said, "We are going to be working on this in Washington."

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