Medical bills prompt more than 60 percent of U.S. bankruptcies

Source: CNN

This year, an estimated 1.5 million Americans will declare bankruptcy. Many people may chalk up that misfortune to overspending or a lavish lifestyle, but a new study suggests that more than 60 percent of people who go bankrupt are actually capsized by medical bills.

Bankruptcies due to medical bills increased by nearly 50 percent in a six-year period, from 46 percent in 2001 to 62 percent in 2007, and most of those who filed for bankruptcy were middle-class, well-educated homeowners, according to a report that will be published in the August issue of The American Journal of Medicine.

Overall, three-quarters of the people with a medically-related bankruptcy had health insurance, they say.

"That was actually the predominant problem in patients in our study -- 78 percent of them had health insurance, but many of them were bankrupted anyway because there were gaps in their coverage like co-payments and deductibles and uncovered services," says Woolhandler. "Other people had private insurance but got so sick that they lost their job and lost their insurance."

Read the whole story at CNN

The Court Battle Over Health Care Is a Struggle For a Future Vision for America

Source: Steven Rosenfeld

On Monday, March 26, when the U.S. Supreme Court begins three days of hearings on the centerpiece of President Obama’s new federal healthcare law, the requirement that all U.S. citizens and residents have health insurance, it is not just the fate of a historic reform affecting one-sixth of the nation’s economy and everyone’s access to care that will be at stake, but the role and scope of government for years to come.

Read the whole story at AlterNet

The Rich Get Even Richer

Source: Steven Rattner

NEW statistics show an ever-more-startling divergence between the fortunes of the wealthy and everybody else — and the desperate need to address this wrenching problem. Even in a country that sometimes seems inured to income inequality, these takeaways are truly stunning.

 

Graphic

In 2010, as the nation continued to recover from the recession, a dizzying 93 percent of the additional income created in the country that year, compared to 2009 — $288 billion — went to the top 1 percent of taxpayers, those with at least $352,000 in income. That delivered an average single-year pay increase of 11.6 percent to each of these households

Still more astonishing was the extent to which the super rich got rich faster than the merely rich.

Read the whole story in the New York Times

Lobbyists, Guns and Money

Source: Paul Krugman

Florida’s now-infamous Stand Your Ground law, which lets you shoot someone you consider threatening without facing arrest, let alone prosecution, sounds crazy — and it is. And it’s tempting to dismiss this law as the work of ignorant yahoos. But similar laws have been pushed across the nation, not by ignorant yahoos but by big corporations.

Specifically, language virtually identical to Florida’s law is featured in a template supplied to legislators in other states by the American Legislative Exchange Council, a corporate-backed organization that has managed to keep a low profile even as it exerts vast influence (only recently, thanks to yeoman work by the Center for Media and Democracy, has a clear picture of ALEC’s activities emerged). And if there is any silver lining to Trayvon Martin’s killing, it is that it might finally place a spotlight on what ALEC is doing to our society — and our democracy.

Read the whole story in the New York Times

Religious Experiences Shrink Part of the Brain

A study links life-changing religious experiences, like being born again, with atrophy in the hippocampus

The article, “Religious factors and hippocampal atrophy in late life,” by Amy Owen and colleagues at Duke University represents an important advance in our growing understanding of the relationship between the brain and religion. The study, published March 30 in PLoS One, showed greater atrophy in the hippocampus in individuals who identify with specific religious groups as well as those with no religious affiliation. It is a surprising result, given that many prior studies have shown religion to have potentially beneficial effects on brain function, anxiety, and depression.

A number of studies have evaluated the acute effects of religious practices, such as meditation and prayer, on the human brain. A smaller number of studies have evaluated the longer term effects of religion on the brain. Such studies, like the present one, have focused on differences in brain volume or brain function in those people heavily engaged in meditation or spiritual practices compared to those who are not. And an even fewer number of studies have explored the longitudinal effects of doing meditation or spiritual practices by evaluating subjects at two different time points.

In this study, Owen et al. used MRI to measure the volume of the hippocampus, a central structure of the limbic system that is involved in emotion as well as in memory formation. They evaluated the MRIs of 268 men and women aged 58 and over, who were originally recruited for the NeuroCognitive Outcomes of Depression in the Elderly study, but who also answered several questions regarding their religious beliefs and affiliation. The study by Owen et al. is unique in that it focuses specifically on religious individuals compared to non-religious individuals. This study also broke down these individuals into those who are born again or who have had life-changing religious experiences.

The results showed significantly greater hippocampal atrophy in individuals reporting a life-changing religious experience. In addition, they found significantly greater hippocampal atrophy among born-again Protestants, Catholics, and those with no religious affiliation, compared with Protestants not identifying as born-again.

Read the whole story in Scientific American

Ryan’s budget: It’s not about Medicare cuts

Source: Ezra Klein
(Data: CBO; Graph: Ezra Klein) From reading the coverage, I get the sense that people think Ryan’s budget works something like this: It lowers taxes, cuts the deficit and pays for all that by cutting deep into Medicare. That’s wrong.

Perhaps the simplest way to understand what’s going on in Paul Ryan’s budget, and whether it’s plausible, is to look at page 13 of the Congressional Budget Office’s summary of the Ryan plan (pdf). That’s where the CBO lists Ryan’s assumptions about how future budgets would differ under his proposal and under an alternative, high-deficit scenario. That lets us see where, exactly, Ryan’s presumed savings are. And they’re not, for the most part, in Medicare.

In 2030, spending on Medicare is .75 percent of GDP lower than in the alternative fiscal scenario. In fact, Ryan and the Obama administration have proposed the same rate of growth for Medicare: GDP + 0.5 percent.

It’s Medicaid and other health spending, which includes the Affordable Care Act, where Ryan really brings down the hammer: That category falls by 1.25 percent of GDP. So Ryan’s cuts to health care for the poor are almost twice the size of his cuts to health care for the old.

And then there’s the “everything else” category, which includes defense spending, infrastructure, education and training, farm subsidies, income supports, veteran’s benefits, retraining, basic research, the federal workforce and much, much more. And this category of spending falls by 2.5 percent of GDP.

That’s a lot of numbers. But it’s also clarifying. The big cut here isn’t to health care for old people, though that gets the headlines. It’s to health care for poorer Americans. The biggest category of cuts is “everything else,” which shrinks to implausibly low levels, and Ryan, to my knowledge, has never detailed, even in broad strokes, how he gets it that low. But since he’s opposed to further defense cuts — he in fact raises spending on defense in the next 10 years — it seems inevitable that the non-defense side of “everything else” would have to shrink considerably, and that means cutting quite a bit from income supports and veterans’ benefits and infrastructure.

Then there’s the whole question of where Ryan gets the $6.2 trillion he’ll need to fill the hole in his tax plan.

So if you take Ryan at his word, and you assume his policies will work exactly as he hopes, what you get is a plan that lowers taxes and lowers the deficits mostly by cutting health-care subsidies and income supports for the poor, and only then by cutting Medicare.

Ryan’s tax plan: $6.2 trillion short

Source: Ezra Klein

The Tax Policy Center looked into the revenue loss associated with House Budget Chairman Paul Ryan’s plan to cut the tax code down to two rates of 10 percent and 25 percent. They estimate the changes would raise $31.1 trillion over 10 years, or 15.4 percent of GDP. That’s $10 trillion less than the tax code would raise if the Bush tax cuts were allowed to expire, and $4.6 trillion less than it would raise if all of the Bush tax cuts were extended.

The Republican conressman says he’ll “broaden the tax base to maintain revenue...consistent with historical norms of 18 to 19 percent.” So let’s say Ryan needs to find close-enough deductions and loopholes to hit 18.5 percent of GDP. That means he’d need to close about $6.2 trillion in tax deductions and loopholes over 10 years.

That will not be easy. And, as of now, he has not named even one deduction or loophole that he would close.

Bob Lutz gets a lesson in climate change, science from Neil deGrasse Tyson

"You're in the bubble, Bob, you're in the bubble."

This was host Bill Maher's response to Bob Lutz's claim on Real Time this past weekend that there is no overwhelming scientific consensus that climate change is happening. Lutz, a former General Motors chairman and not a believer in global warming, defended his point of view, even when scientist Neil deGrasse Tyson patiently explained that there are, indeed, scientific agreement and observable real-world signs that the world is getting warmer. He also explained that science rests upon consensus, but it's a consensus of experiments, not opinions. Lutz responded that he's heard for decades that the oceans will someday warm and rise, but he bought a home in the Florida Keys anyway. Then Tyson made a prediction of his own:

You take all the scientists who author these papers, get them to pool their money and invest in companies that would benefit from global warming. And take all the people who are in denial of global warming, take all their money and invest in companies that would presume there is no global warming. And I would predict, if you want a prediction, that you will all go broke in the next 50 years.

Lutz's reply? "I will predict exactly the opposite." See for yourself in the video after the jump.

Watch the Video

News Source: HBO via Mediaite

Equality of Opportunity? Never Mind

Source: Paul Krugman

David Firestone catches Mitt Romney denying any public responsibility to help less-fortunate Americans get an education:

“It would be popular for me to stand up and say I’m going to give you government money to pay for your college, but I’m not going to promise that,” he said, to sustained applause from the crowd at a high-tech metals assembly factory here. “Don’t just go to one that has the highest price. Go to one that has a little lower price where you can get a good education. And hopefully you’ll find that. And don’t expect the government to forgive the debt that you take on.”

Just the other day, Romney was telling us that he was the true heir of Teddy Roosevelt, because he favored equality of opportunity, not equality of results. His claims about Obama were, of course, completely false; so, it turns out, were his claims about himself.

Just a reminder of how unequal access to higher education already is: low-income students with high test scores are less likely to finish college than high-income students with low test scores:

And Romney proposes making it even more unequal.

But hey, he personally made it the hard way, getting through college with no income except from selling the stocks his father gave him.

High health-care costs: It’s all in the pricing

Graphic: The price tag for medical care is dramatically higher in the U.S.

There is a simple reason health care in the United States costs more than it does anywhere else: The prices are higher.

That may sound obvious. But it is, in fact, key to understanding one of the most pressing problems facing our economy. In 2009, Americans spent $7,960 per person on health care. Our neighbors in Canada spent $4,808. The Germans spent $4,218. The French, $3,978. If we had the per-person costs of any of those countries, America’s deficits would vanish. Workers would have much more money in their pockets. Our economy would grow more quickly, as our exports would be more competitive.

Read the whole story at the Washington Post

Four Fiscal Phonies

Source: Paul Krugman

The Committee for a Responsible Federal Budget – not my favorite people, but they can do their arithmetic – has put together evaluations of the four remaining GOP candidates’ tax and spending plans. Annoyingly, however, they compare these plans to a so-called “realistic baseline” that assumes, among other things, that all the Bush tax cuts are made permanent. So for all the talk of the urgency of deficit control, the need to cut basic social insurance programs, the CRFB is in effect willing to accept as a fait accompli the biggest, most gratuitous budget-busting action of the past couple of decades.

How to fix this? One way would be a current-law comparison, which would involve allowing all the Bush tax cuts to expire. But it also seems to me useful to compare the Republican plans with the Obama administration’s plan, which would at least allow the high-end tax cuts to expire. How does debt under this plan compare with the four Republicans?

Well, here’s debt as a percentage of GDP in 2021 (using the OMB numbers (pdf) for Obama and CRFB for the others):

Yep: as Republicans yell about Obama’s deficits and cry that we’re turning into Greece, Greece I tell you, all of them, all of them, propose making the deficit bigger.

And for what? For reverse Robin-Hoodism, taking from the poor and the middle class to lavish huge tax cuts on the rich.

And I believe that all of them know this, too. It’s pure hypocrisy – and it’s all in the service of class warfare waged on behalf of the top 0.1 or 0.01 percent of the income distribution.