Archive for the ‘Social Breakdown’ Category

Life savings sucked into black hole of tunnels

Sunday, June 21st, 2009

– People the world over believe they can get something for nothing.   They believe in get-rich-quick schemes.   And, people the world over will take advantage of others as part of their own get-rich-quick schemes.   Human nature – ain’t it a wonderful thing?   Even in the desperate circumstances of the Gaza Strip, people use and misuse each other with impunity

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tunnelsJawad Tawfiq, a 52-year-old Gazan actor and director, was dubious at first, but his nephew insisted. If they could scrape together enough money, the nephew said, large profits could be made from investing in the tunnels beneath the Egyptian border.

“They were liars,” Tawfiq said bitterly. “They took my money to put in their own pockets. And we are being offered a fraction of what we gave them.”

At first the tunnels emerged as smuggling routes; then they became the vital lifeline for a Gaza under economic siege by Israel. But many people who invested in the tunnels now see them quite differently – as a source of ruination.

The tunnel schemes were advertised as opportunities for doubling and trebling money by unscrupulous figures linked to powerful businessmen in Gaza and, allegedly, to senior officials in Hamas, but have instead led to huge losses for ordinary residents of the Strip.

According to Hamas’s Economics Minister, Ziad al-Zaza, whose office is investigating the issue, US$100 million ($159 million) has been taken fraudulently from would-be entrepreneurs. Others suggest the figure could be closer to US$500 million.

More…

The dissolution of European cultures

Sunday, June 21st, 2009

immigration– I’ve discussed Immigration and Assimilation before.   The idea basically being that if countries want to preserve their current cultures, that they cannot allow immigration of peoples from other cultures at too fast a rate.  When new people come in at too fast a rate, they do not assimilate into the receiving culture.  Rather, they establish new cultural enclaves within the receiving culture and once enough of them have gathered, the country’s cultural identity is fractured and either a new hybrid emerges or culture wars ensue.

– The report, below, from Belgian TV, shows that this is already happening in Europe.  The same thing, I believe, is going on in Britain, France, the Netherlands and Germany among others.

– Perhaps the deepest irony here is that the very countries that most of these Muslim immigrants hail from have no reciprocal intention to accept large numbers of immigrants from other cultures.

– Can you imagine large numbers of European immigrants setting up ‘Little Europe’ neighborhoods in any Mulslim country, building Christian churches and demanding that they be allowed to practice their European cultural and religious practices freely alongside the Muslim  locals?

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Click the following link to see the video: 

– research thanks to Mike D.

– Additional reading: , and

Health insurers refuse to limit rescission of coverage

Thursday, June 18th, 2009

– There’s a lot that bothers me about health care coverage here in the U.S.A.  I’ve written several times on it:


– But I don’t think I’ve seen anything that irritated and angered me quite like the story below.

– Insurance industry executives saying in front of congress that they will do basically anything they can to drop folks who are insured – rather than paying their legitimate claims.  Unbelievable!

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cancelLawmakers ask three executives if they’ll stop dropping customers except where they can show “intentional fraud.” All say no.

Executives of three of the nation’s largest health insurers told federal lawmakers in Washington on Tuesday that they would continue canceling medical coverage for some sick policyholders, despite withering criticism from Republican and Democratic members of Congress who decried the practice as unfair and abusive.

The hearing on the controversial action known as rescission, which has left thousands of Americans burdened with costly medical bills despite paying insurance premiums, began a day after President Obama outlined his proposals for revamping the nation’s healthcare system.

An investigation by the House Subcommittee on Oversight and Investigations showed that health insurers WellPoint Inc., UnitedHealth Group and Assurant Inc. canceled the coverage of more than 20,000 people, allowing the companies to avoid paying more than $300 million in medical claims over a five-year period.

It also found that policyholders with breast cancer, lymphoma and more than 1,000 other conditions were targeted for rescission and that employees were praised in performance reviews for terminating the policies of customers with expensive illnesses.

“No one can defend, and I certainly cannot defend, the practice of canceling coverage after the fact,” said Rep. Michael C. Burgess (R-Tex.), a member of the committee. “There is no acceptable minimum to denying coverage after the fact.”

The executives — Richard A. Collins, chief executive of UnitedHealth’s Golden Rule Insurance Co.; Don Hamm, chief executive of Assurant Health and Brian Sassi, president of consumer business for WellPoint Inc., parent of Blue Cross of California — were courteous and matter-of-fact in their testimony.

But they would not commit to limiting rescissions to only policyholders who intentionally lie or commit fraud to obtain coverage, a refusal that met with dismay from legislators on both sides of the political aisle.

More…

The Battle for Pork Chop Hill (healthcare)

Tuesday, June 16th, 2009

obama-listening– A friend of mine is an M.D. and recently he responded to President Obama’s request for grass-roots input from the U.S. public on health care reform by writing a letter to the president detailing his thoughts.   He sent me a copy of his letter to see if I had any thoughts and/or comments.

– I found it a well-written, thoughtful letter full of excellent suggestions but when I responded to him, I found it impossible to get into the spirit of it.   To me, here in the U.S., the battle for serious health care reform, is a meaningless battle – a lot like those battles when our troops fought for mastery of particular hilltop in WWII and the Korean War.   The hills won one day at a terrible cost would be abandoned just a few days later as the conditions of the larger enclosing battles changed.

– Frankly, I don’t think there’s any chance that the U.S. will ever enact serious health care reform and in my response to my friend, below, you’ll see why.

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Dr. H.,

Thank you for responding to the president’s request for input on our health care system.   What you’ve written here is an excellent public service.

I too have thoughts about all of this but I’m afraid I am less optimistic that calls for ideas will lead to any changes of significance.   My fear, as I’ve told you before, is that the medical and pharmaceutical industries in the U.S. have been thoroughly captured by large and powerful profit-centric corporate interests and that nothing will wrest control back from them short of a revolution.

Corporations vs. People

I don’t mean an armed revolution.   I mean a revolution in how we, as human beings, think about what the purposes of our national governments should be.   I’m fond of saying that, “One cannot have two number-one priorities.“  When it comes to deciding what governments are for, we certainly cannot.   We either have to place the welfare and happiness of the nation’s people first or the freedom of the nation’s corporations  to do whatever they want to do in their pursuit of profits.  We cannot have it both ways.

Once this choice is explained clearly and brought into our collective consciousness, I have little doubt that most people would feel that government’s number-one priority should be to maximize the quality of life for its citizens.   But, absent such explanations and awarenesses, our country, and most others as well, have been primarily molded by those who seek profit and power for themselves with little regard for the circumstances of others.

(As an aside, let me say that I am not against Capitalism.   Indeed, it is the engine that creates wealth and innovation in our societies.   I am only saying that at the very top of the decision pyramid, when corporate interests clash with the best interests of the people, the decision makers should opt for the good of the people.   Done even handedly, this might limit the range of actions of corporations but it would still be a level playing field for them and none would be disadvantaged verses the others.   More over, those decisions makers at the very top would be strongly instructed to stay out of the way of corporations to the maximum extent possible – save when the people’s best interests are at stake).

So, from my POV, the battle here is not how we can ‘fix’ health care.  It goes far far deeper than that.   Until we, as a people, decide that the happiness and well being of the nation’s people IS the highest priority of the national government, we will always have these battles.   And, given the drive and tenacity of those whose primary aims are for power and profit, we will usually lose these battles.

Beyond all of this, there are bigger problems for our country and the world yet looming.

Globalization

A healthy vibrant country can organize its finances to support free medical care for all of its citizens.  Several countries around the world have proven this decisively.   But, I’m not sure that a country whose finances are faltering badly can do this.   And our country is faltering badly at this point in its history.   Globalization was touted as our “friend”.   Indeed, as the “world’s friend”; better and cheaper products for everyone and improved standards of living for all.

life-and-debtBut, it hasn’t turned out that way for some of us.  Small countries, like Jamaica (see the Movie “Life and Debt“), have had food stuffs injected  into their markets at far lower prices than their local farmers could sell for.  The result is that the local farmers have all lost their farms and moved to the cities and now entire countries are completely dependent on the food stuffs supplied by the multinational corporate proponents of Globalization.  Sure, these folks can buy their food cheaper.  But now they’ve lost their independence, their jobs, their communities and they are utterly dependent on outside forces for their survival.   Globalization has made them into captive consumers.

And the rich nations have not escaped unscathed.   Multinational corporations seeking ever larger profits have convinced us in the U.S. to send our manufacturing and high-tech industries overseas.    They promised us lower costs on all the cheap goods  love to buy at Wal-Mart.  And for a while, that was fun.   But now we see the deep truth that a nation can only continue being rich if it produces and sells things of value.  And we’ve been turned into a nation of consumers and borrowers by Globalization and are getting poorer by the day.

The multinationals saw great opportunity some years back when they gazed at, for example, the U.S. and China.   They thought, “China is poor and has really cheap labor and the U.S. is rich and its labor is expensive.   If we connect these two situations, goods will flow from China to the U.S. and money will flow from the U.S. to China and we’ll set ourselves up as the folks in the middle coordinating the exchange and getting hugely rich.“  And, for the multinationals and China, it’s been a good deal.  But, for the U.S., the promises of Globalism have only impoverished us.

So, back to socialized health care.   I don’t believe that even if the U.S. wanted to implement serious socialized healthcare, that we could.   What would we pay for it with?   We are no longer a wealth generating nation.

So, that’s one of the big looming problems I was referring to.

Economies and Growth

The other has to do with the idea that most of our societies are built upon the principle that healthy economies are growth economies.  That’s worked well for us as a species up until now but it isn’t going to work much longer.   We’re coming to the limits of what the planet can supply for food and water and we’ve clearly exceeded what it can supply for renewable resources. We’ve built the very foundations of our societies on a non-renewable resource, oil, that will be running out soon.   And we’ve messed with the atmosphere’s Carbon Dioxide so badly that we’re well on our way towards a major climate shift.

And, in the midst of all of these dire warnings written so clearly on the wall of our future, the very best folks can come up with, as they consider and fret about the problems of the currently global economic downturn, is that with luck and perseverance, soon we’ll have our economies all back up and running just as before – with ever increasing growth, consumption and pollution as the cornerstones of our brave new world – same as the old unworkable, unsustainable world.

So, that would be the second problem – and it’s a big one.

Perspectives

pork-chop-hillIf you are down inside the workings of a specific nation and deeply involved and  invested in the concerns and problems of the local health care system, then it might seem reasonable to you to fight the good fight  for a better way of doing things.

But I would suggest that if one gets out of the trenches and ascends above the entire field of battle to a great height, one might see that in the bigger picture it isn’t going to matter if your brave and idealistic unit captures that small hill called “Healthcare”.   Bigger forces are afoot and visible from a greater height.

Those are my thoughts, Dr. H.   As always, I know I sound like a great pessimist.   But I don’t feel that way.   I think I am simply seeing the bigger picture.   I too am idealistic and I talk and rail and write about all of this almost daily.   But, in truth, I don’t do these things because I think I can really change them.   I act more because speaking the truth is right in and of itself and needs no other justification.

At the end of your letter, you listed the following points:

1. There is no place in medical care for “For Profit”.

2. Insurance companies’ priority is profit for shareholders.

3. Direct to patient advertising should be banned.

4. Medical Schools need to be induced to greatly increase graduation of primary care physicians, including loan forgiveness for those who go into primary care practice.

5. Providers should be incentivized for keeping patients healthy and minimizing expensive tests and medications.

6. We should have a single payer system that links patients and families with primary care providers that have support from social services, nutrition and exercise referrals and other support groups.

7. Hopefully we can move toward a society with less income inequality and social injustice where we prioritize education and opportunity and improve the quality of life for all.

I agree and applaud everyone of them.  And I say this not withstanding the fact that I think this battle over health care will be swept away by the larger trends that are afoot.

Again, thanks for writing your letter to the President.  I deeply admire your motives and your idealism.   Please do not take anything I’ve said here as a criticism – it is not intended to be.

Your friend,

Dennis Gallagher

Connected World Gives Viruses The Edge

Sunday, June 14th, 2009

“The findings also suggest that as human activity makes the world more connected, natural selection will favour more virulent and dangerous parasites.”

– This quote from the article text below is no surprise to me or to anyone who has looked at the logic of how contagious diseases spread.   You pack more and more people together and the situation begins to favors more and more virulent diseases.   The Black Death in Europe was, perhaps, the first concrete demonstration of this.  The world today is ripe and getting riper for this sort of thing.   We’ve been extremely lucky that some of the very nasty things around like Ebola have not thus far gotten loose in a population center.

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That’s one conclusion from a new study that looked at how virulence evolves in parasites. The research examined whether parasites evolve to be more or less aggressive depending on whether they are closely connected to their hosts or scattered among more isolated clusters of hosts.

The research was led by Geoff Wild, an NSERC-funded mathematician at the University of Western Ontario, with colleagues from the University of Edinburgh.

“Our study follows up on some recent findings that suggest that reduced dispersal of parasites across scattered host clusters favours the evolution of parasites with lower virulence – in the case of influenza, for example, a milder, possibly less deadly, case of flu,” said Dr. Wild.

“Some researchers had contended from this that the parasites were evolving to support the overall fitness of the group,” he added. “The argument for adaptation at the group level is that the parasites become more prudent to prevent overexploitation and hence to avoid causing the extinction of the local host population.”

However, Dr. Wild and his colleagues were not convinced that Darwinian theory – so successful in providing explanations based on the notion that adaptation maximizes individual fitness – was ready for such a major makeover.

The researchers decided to move the arguments from words to harder science. Together they developed a formal mathematical model that incorporated variable patch sizes and the host parasite population dynamics. It was then run to determine the underlying evolutionary mechanisms, the results of which were published in the Nature paper.

More…

For 300 years Britain has outsourced mayhem. Finally it’s coming home

Wednesday, June 10th, 2009

– I’ve long thought that Britain has had a lot to own up to that it has largely been in denial of.   Things like selling salt from the sea to the Indians during Gandhi’s years of protest. Not that the U.S., with its Monroe Doctrine and its manipulation of Latin American events for its own benefit, hasn’t much of the same history and denial.   But Monbiot (one of my favorites authors) surely nails the paper to the church door here.   I think the average U.S. and British citizen, living blissfully within the cocoons of wealth created by these rapacious adventures, has very little idea how much of their comfort came at what cost to others.

– But, irony abounds.   Those who were disadvantaged by these manipulations; China with the Opium, Chile with the Copper and etc., are quick to point at their wounds and moralize.   But, inevitably, as the winds of history shift, they will come into ascendance and practice all the same self-aggrandizements at the expense of the weaker.  Indeed, I find myself wondering frequently what sort of a world-master China is going to make - given the current trends.

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Opium, famine and banks all played their part in this country’s plundering of the globe. Now it’s over, we find it hard to accept

Why now? It’s not as if this is the first time Britain’s representatives have been caught out. The history of governments in all countries is the history of scandal, as those who rise to the top are generally the most ambitious, ruthless and unscrupulous people politics can produce. Pushing their own interests to the limit, they teeter perennially on the brink of disgrace, except when they fly clean over the edge. So why does the current ballyhoo threaten to destroy not only the government but also our antediluvian political system?

The past 15 years have produced the cash-for-questions racket, the Hinduja and Ecclestone affairs, the lies and fabrications that led to the invasion of Iraq, the forced abandonment of the BAE corruption probe, the cash-for-honours caper and the cash-for-amendments scandal. By comparison to the outright subversion of the functions of government in some of these cases, the is small beer. Any one of them should have prompted the sweeping political reforms we are now debating. But they didn’t.

The expenses scandal, by contrast, could kill the Labour party. It might also force politicians of all parties to address our unjust voting system, the unelected Lords, the excessive power of the executive, the legalised blackmail used by the whips, and a score of further anachronisms and injustices. Why is it different?

I believe that the current political crisis has little to do with the expenses scandal, still less with Gordon Brown’s leadership. It arises because our economic system can no longer extract wealth from other nations. For the past 300 years, the revolutions and reforms experienced by almost all other developed countries have been averted in Britain by foreign remittances.

The social unrest that might have transformed our politics was instead outsourced to our colonies and unwilling trading partners. The rebellions in Ireland, India, China, the Caribbean, Egypt, South Africa, Malaya, Kenya, Iran and other places we subjugated were the price of political peace in Britain. After decolonisation, our plunder of other nations was sustained by the banks. Now, for the first time in three centuries, they can no longer deliver, and we must at last confront our problems.

There will probably never be a full account of the robbery this country organised, but there are a few snapshots. In his book Capitalism and Colonial Production, Hamza Alavi estimates that the resource flow from India to Britain between 1793 and 1803 was in the order of £2m a year, the equivalent of many billions today. The economic drain from India, he notes, “has not only been a major factor in India’s impoverishment … it has also been a very significant factor in the industrial revolution in Britain”. As Ralph Davis observes in The Industrial Revolution and British Overseas Trade, from the 1760s onwards India’s wealth “bought the national debt back from the Dutch and others … leaving Britain nearly free from overseas indebtedness when it came to face the great French wars from 1793”.

More, much more…

– Research thanks to Robin S.

Europe swings Right as depression deepens

Wednesday, June 10th, 2009

– The economic situation is beginning to exert powerful effects on the political landscape.  Witness this analysis of current events in Europe.

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The establisment Left had been crushed across most of Europe, just as it was in the early 1930s.

We have seen the ultimate crisis of capitalism — what Marxist-historian Eric Hobsbawm calls the “dramatic equivalent of the collapse of the Soviet Union” — yet socialists have completely failed to reap any gain from the seeming vindication of their views.

It is not clear why a chunk of the blue-collar working base has swung almost overnight from Left to Right, but clearly we are seeing the delayed detonation of two political time-bombs: rising unemployment and the growth of immigrant enclaves that resist assimilation.

Note that Right-wing incumbents in France (Sarkozy) and Italy (Berlusconi), survived the European elections unscathed.

Left-wing incumbents in Germany, Austria, the Netherlands, Spain, Portugal, Hungary, Poland, Denmark, and of course Britain were either slaughtered, or badly mauled.

The Dutch Labour party that has dominated national politics for the last half century fell behind the anti-immigrant movement of Geert Wilders (banned from entering Britain). It serves them right for the staggeringly stupid decision to force through the European Constitution (renamed Lisbon) after it had already been rejected by their own voters by a fat margin in the 2005 referendum.

The Portuguese Socialists face Siberian exile after seeing a 18pc drop in their vote. The slow drip-drip of debt-deflation for a boom-bust Club Med state, trapped in the eurozone with an overvalued exchange rate (viz core Europe, and the world), has suddenly turned into a torrent. The country is already in deflation (-0.6pc in April). It has been suffering its own version of Japanese perma-slump for half a decade.

Portugal’s opposition is calling for an immediate vote of no censure, while the Government clings to constitutional fig-leaves to hide its naked legitimacy. “O Governo está na sua plenitude de funções,” said the chief spokesman. You can guess what that means. Not long for this world, surely.

In Germany and Austria, the Social Democrats suffered their worst defeats since World War Two. I don’t say that with pleasure. A vibrant labour-SPD movement is vital for German political stability. It was the peeling away of Socialist support during the Bruning deflation of the Depression years — so like today’s Weber-Trichet deflation — that led to the catastrophic election of July 1932, when the Nazis and Communists took half the Reichstag seats.

More…

– Research thanks to Robin S.

Health Care Insurance in the United States

Sunday, June 7th, 2009

We just got our new healthcare costs for next year.   An 11.3% increase.   This means that out monthly healthcare costs will jump from $885.98/mo ($10,631.76/yr) to $986.40/mo ($11,836.80/yr).   That’s $1205.04 more per year.

And this is the cheapest insurance our provider offers.  We each pay a $2,500 deductable before we see any benefits coming back to us.

Am I deeply disgusted?   You bet.   I’m not going to get 11.3% more services for the extra money I’ll pay – just the same services as before.

I really wonder what is making healthcare costs rise so strongly here in the US if I’m not getting more services?

One thing I’d be willing to bet on:  The health insurer companies are not in danger of going under.  If their costs rise, they just pass it on to those who buy their policies.

Things are unraveling in this country day by day.   And those corporate interests who have captured our pharmaceutical and medical systems stand above the fray and continue to milk us for their profits.

Have you ever asked yourself why an operation that costs $30,000 in the US costs $6000 in India?   Oh, you say, “It’s because the quality of the medical care in there is sub-standard?”   Not so.   It is equivalent.   Read this: or this .   And if you are still curious, Google for “medical costs in India” or “Medical costs in Thailand” for more.   It’ll be an eye-opener.

New Zealand and its socialized medical system is looking better and better to me everday.

Green Shoots, Red Ink, Black Hole

Saturday, June 6th, 2009

– This article says what I’ve been saying for some time.   And, it’s got a lot of good data to support its points.  U.S. and multinational corporations in their obsessive quests for maximum profits have gutted this country’s ability to be a net wealth generator.  And now we’re locked into a fatal embrace with China in which we have to borrow ever more to maintain the facade that we’re solvent and they have to keep loaning it to us least our failure compromises what they’ve already lent us.   Now, who in their right mind thinks that can go on forever?  Nice eh?

– Give this article a good read all the way through – if you care about knowing which way the wind’s blowing – and about your future.

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Truly terrifying data about the real state of the U.S. economy.

By Eliot Spitzer

I have an unfortunate sense that the “green shoots” in the economy that everyone is talking about are nothing but dandelions. Sure, forcing $1 trillion of taxpayer money—in direct capital, guarantees, and diminished cost of borrowing—into the banking sector has permitted the major banks to claim solvency for the moment. Yet we should not forget that this solvency has come not through a much needed deleveraging of the banking sector but rather from a massive transfer of the obligations of private banks to the public, with the debt accruing to future generations. And overall loan quality at U.S. banks is still the worst in 25 years and deteriorating at the fastest pace ever.

It’s a terrible mistake to confuse the momentary solvency of the financial sector and the long-term health of our economy.

While we have addressed the credit collapse, we have not begun to tackle the far more daunting, and more significant, structural problems in the economy. Instead of focusing on the green shoots, let’s examine the macro data that will determine our national prosperity in the next generation. These data are terrifying.

Start with the job front. Long term, nothing is more fundamental than good jobs to creating the middle-class wealth that must drive the economy. The creation of true middle-class jobs was the great success of our economy from 1950s through the mid-1990s. Consider the job data, in aggregate and by sector, from the past decade. (All data are from the U.S. Department of Labor, Bureau of Labor Statistics.)

Unemployment Rate by Industry
Year Unemployment rate Manufacturing Jobs
(in millions)
Serv. Jobs Gov’t. Jobs Total Jobs Population
1999 4.3 18.48 102.23 20.09 133 272
2004 5.6 14.3 108.64 21.5 138.38 292
2009 8.9 12.4 113.82 22.54 141.57 305

One-third of our manufacturing jobs have disappeared in a decade! And while population grew 12.1 percent over the decade, jobs grew by only 6.4 percent. The unemployment number, moreover, doesn’t count those who are “marginally attached to the labor force,” because even though they want to work and are available to do so, they have not sought a job in the past four weeks. In raw numbers, the total number of individuals counted as currently unemployed and those who are marginally attached is a staggering 15.8 million. That is an enormous mountain of job creation to climb.

More…

– Thanks to Rolf A. for research

Are medical costs the leading cause of U.S. bankruptcies?

Friday, June 5th, 2009

– This story and the one before it both illustrate what is so very wrong with the fact that the U.S. is the only industrialized western nation without universal health care.   And why?  Because corporate interests have captured our system and they are not about to forego their immense profits for the benefit of mere people.

– Read this to see how it could be:

– And read these to see the ways things are going very very wrong: and

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At least 62 percent of all U.S. family bankruptcies result from medical expenses, reports a study released yesterday in The American Journal of Medicine—an increase from the 46 percent the reseachers found in 2001.

Analyzing data from 2,314 randomly selected 2007 (pre-mortgage-meltdown) bankruptcy filings revealed that most of those who had claimed bankruptcy because of medical expenses had health insurance, owned homes, were in their mid-40s and had middle class incomes.

High out-of-pocket expenses for those already insured and the loss of private insurance were the primary reasons for medical bankruptcy, report the study authors—many of whom are active members of Physicians for a National Health Program, a group that advocates for a single-payer system.

More…