The National Coalition on Health Care found in 2008 that 50% of all bankruptcy had health care costs as a major cause of financial distress. 68% of those who filed bankruptcy for health care costs had health insurance at the time of their catastrophe. Yet, America is the richest country in the world with one of the highest quality of life ratings. So why are so many people forced to financial ruin and poverty due to health problems? And how is the new government under President Obama going to help reduce health-care related poverty?

For many Americans, they are most vulnerable when they purchase health care plans from private insurance companies outside of their employer. Private insurance companies like Anthem Blue Cross and Aetna are free to deny health care charges as they see fit. Furthermore, many private insurance companies will deny payment altogether under the guise of “previous existing medical condition”.

When this happens, patients are held liable by the doctors and hospitals to pay bills. Often, patients can write an appeal but this can take months. In the meantime they must pay their bills or face serious financial recourse. If they cannot pay, hospitals and doctors can put a lean on their house, garnish wages and even take their tax returns.

Before the presidential election, President Barack Obama made a plea to the American people: more protections for Americans using private insurance, stronger employer insurance, stronger preventative care and the establishment of a National Health Insurance Exchange. Now, a day after his Inauguration, President Obama has a chance to change the way America gets healthy.

Such reforms could prevent well over a million bankruptcies a year and ensure every American gets the health care they need- regardless of their ability to pay.

For more information, visit: The National Coalition of Health Care and The White House