Death by Money

Worried about what might kill you? Forget lightning or terrorism – but we already know those are rare. What about homicide or drunk driving? Bad ways to go, certainly, but there’s one that kills more Americans than both of those combined. It works in partnership with cancer, heart disease, and diabetes.

Are you thinking smoking? Nope. Good guess though. The killer is a lack of health insurance or insufficient insurance. It comes when you lose a good job, retire with less than the needed benefits or simply can’t afford to spring for a good policy.

According to a study from 2009 in the American Journal of Health Insurance, there are approximately 45,000 extra deaths a year from a lack of health care coverage. But even for those with some coverage, debt and even bankruptcy is a real risk. The numbers get even more staggering when you look at it from the other end of the telescope: How much does a disease actually cost?

A note about these numbers: They are based on total medical expenditures for the disease in the US divided by the number of people diagnosed with the disease. They are yearly averages and do not include associated illnesses which can add tremendously to the cost. They also do not include lost productivity, which increases the costs to society as a whole. Data applies to the year listed – assume all costs are currently higher.

• Average diabetic treatment for one year (2007) – $6,170. This includes non-insulin dependent (low cost) and insulin dependent (high cost).
• Heart disease (2003) – from $2,200 to $8,000 a year, depending on whose numbers you believe. The cost per lifetime if you have a heart attack (less if you die quickly!) is $140,000 on average.
• Hypertension (2003) – relatively cheap at $290 a year on average. This is because generics are available for prescriptions. From an economic standpoint, hypertension is an add-on cost to whatever disease is bankrupting you.
• Cancer (2003) – $2,285, but skewed tremendously toward those undergoing active, lifesaving treatments. Expect to pay more than $10,000 for your first year with an active case.

Does it really matter?

Yes. Doctors do limit treatment or offer different treatments depending on your ability to pay. From a study reported in Daily Finance: “And while 84% of them [oncologists] said that patients' out-of-pocket spending influences treatment recommendations, only 43% of them actually discuss costs with patients on a regular basis. Also, 64% agreed that Medicare reimbursement rules limit what therapies they can offer.”

On the one side, doctors and hospitals limit treatments based on financial considerations. But on the other, patients don’t follow the advice they get when they can’t afford to. We’ve all heard the tale of a senior who has to decide between food and drugs. That actually happens, but more commonly, it’s a choice between full care and “give it a shot.”

For many (in any age group), going to a doctor is a luxury, one they can’t afford without real struggle. This pushes diseases into a more expensive category. Waiting means the disease progresses and is then more expensive to deal with, when eventually it can no longer be ignored.

Solomon Neuhardt has been representing individuals against insurance companies for years and has obtained millions of dollars in verdicts and settlements for clients injured in car accidents, trucking accidents, dangerous drugs and many other personal injury related cases.