Navigation Links
The Effects of Health on Wealth: New Study Reveals Individuals Without Health Insurance at Risk for 'Financial Catastrophe'
Date:10/15/2009

CHICAGO, Oct. 15 /PRNewswire/ -- Americans without health insurance are one major illness away from financial catastrophe, according to a new study. New research by the Kellogg School of Management at Northwestern University suggests that uninsured individuals nearing retirement age who experience a major health concern, such as heart disease, cancer or a stroke, can lose up to half of their household assets in order to pay their medical expenses.

The study, titled "Does Major Illness Cause Financial Catastrophe?", will be published in an upcoming issue of Health Services Research Journal. The research was conducted by professors David Dranove and Andrew Sfekas at the Kellogg School of Management at Northwestern University, and Keziah Cook, PhD candidate in economics at Northwestern University.

Dranove and his co-authors discovered a significant finding among the uninsured, ages 51 to 64, who experienced a major illness. The assets of uninsured households declined between 30 and 50 percent--in total, a median loss of 46 percent. In contrast, when matched with uninsured households with similar backgrounds, those with private health insurance did not experience a financial loss.

"Lack of insurance is at the heart of the healthcare debate with 4.2 million uninsured Americans over 55. Our research provides compelling evidence of the financial damage for these families," said Dranove, the Walter J. McNerney Professor of Health Industry Management at the Kellogg School and director of the Center for Health Industry Market Economics. "Despite a person's income, the uninsured face the risk of losing their retirement savings."

Prior research has explored the impact of medical bankruptcy on the loss of household assets, but this new research is the first study to isolate health insurance and its direct impact on personal finances among individuals. The researchers focused on households with baseline assets between $1,000 and $200,000 and who reported one of six major illnesses. The illnesses included diabetes, cancer, lung disease, heart problems, stroke, and emotional or psychiatric problems.

According to Dranove, the uninsured, near-elderly age group is particularly at risk because they have accumulated significant assets intended for retirement and have fewer opportunities to rebuild if they lose assets due to illness. "For this age bracket, a drop in assets could result in delayed retirement or a lower standard of living," he said.

The researchers matched panel data from the most recent wave of results in the Health and Retirement Study (HRS), a longitudinal survey of near-elderly and elderly administered every two years since 1992 by the Institute for Social Research at the University of Michigan. They analyzed health, insurance and financial data for both insured and uninsured households with at least one person under 65.

"These findings demonstrate private health insurance does protect people from financial ruin," Dranove said. "The problem is not solely with our current system of private health insurance; the problem is ensuring people have access to insurance coverage."

MORE INFORMATION: To see the full study or to arrange an interview with Professor David Dranove, contact Aaron Mays or Betsy Berger at the contact information listed below.

For more information about the Kellogg School of Management at Northwestern University, visit http://www.kellogg.northwestern.edu.

    MEDIA CONTACTS:
    Aaron Mays                                 Betsy Berger
    Kellogg School of Management               MS&L
    Office: 847-491-2112                       Office: 847-577-6063
    Mobile: 773-344-2331                       Mobile: 847-308-1762
    a-mays@kellogg.northwestern.edu            betsy.berger@mslworldwide.com

SOURCE Kellogg School of Management at Northwestern University


'/>"/>
SOURCE Kellogg School of Management at Northwestern University
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. New study may explain Vioxx side-effects
2. 13 percent of women stop taking breast cancer drug because of side effects, U-M study finds
3. Natural aorta grafts have few side effects for infection-prone patients
4. New Report: Dangerous Drug Side Effects and Deaths Doubled Since 1998... Seniors Hit Hardest
5. Detroit Metro Tower Air Traffic Controllers File Lawsuit Alleging Improper Mold Removal and Health Effects
6. Empowerment Program Gets Patients on the PATH to Managing the Physical and Emotional Effects of Psoriatic Arthritis
7. Shaking may cause brain damage and serious long-term effects to infants
8. Smoking can harm the long-term effects of some oral surgery procedures
9. ECLIPSE data on effects of Otsukas investigational novel treatment, Tolvaptan
10. Combination therapy reverses effects of portal hypertension in rats
11. Fighting the Gassy Effects of Good Eating, From the Harvard Health Letter
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... ... October 13, 2017 , ... Dickinson Insurance ... insurance and financial preparation services, is providing an update on a charitable event ... Rock City Rescue is a locally recognized nonprofit that provides shelter and care ...
(Date:10/13/2017)... Pekin, IL (PRWEB) , ... October 13, 2017 ... ... Foundation, which established the certification process to promote standards of excellence for the ... iaedp™ Symposium, scheduled for March 22 – 25, 2018 in Orlando, Florida at ...
(Date:10/13/2017)... , ... October 13, 2017 , ... Apple Rehab ... services, staged a mock evacuation of the facility as part of a disaster drill ... Department, Echo Hose EMS and Shelton City Emergency Manager, as well as the ...
(Date:10/13/2017)... ... October 13, 2017 , ... Global Healthcare Management’s 4th ... Park in Milford, NJ. This free event, sponsored by Global Healthcare Management’s CEO, ... The fun run is geared towards children of all ages; it is a non-competitive, ...
(Date:10/13/2017)... ... October 13, 2017 , ... “The Journey: From the ... danger possible to save lost souls in the Philippines. “The Journey: From the Mountains ... a dedicated teacher of the Bible. She has taught all ages and currently teaches ...
Breaking Medicine News(10 mins):
(Date:10/2/2017)... Denmark , Oct. 2, 2017 The Rebound ... in the struggle to reverse the tide of prescription drug ... for regulating their medicine intake and stepping down their dosage ... set to launch in December 2017; the first 100,000 people ... Learn more at http://www.rebound-solution.com/ ...
(Date:9/25/2017)...   Montrium , an industry leader in ... IQPC Trial Master Files & Inspection Readiness Conference ... Clinical Services has selected eTMF Connect ... EastHORN, a leading European contract research organization (CRO), ... to enable greater collaboration with sponsors, improve compliance ...
(Date:9/19/2017)... -- HistoSonics, Inc., a venture-backed medical device company developing a non-invasive, robotically assisted, platform therapy ... team developments today:   ... ... Tom Tefft ... Veteran medical device executive Josh Stopek , PhD, who has led R&D ...
Breaking Medicine Technology: