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

Many people see a homeless person on the streets, and they think that such a situation could never happen to them. Recently, PBS chronicled vital statistics databases and homeless shelters all across the U.S. to determine the biggest causes of homelessness.

Lack of adequate health care is right at the top of the list. 1/3 of Americans have no health insurance, and most of these are low-income workers. The sicker they become, the more likely they are to be laid off. Without health care, they cannot get better. If they cannot get better, they cannot work. As a result, they end up homeless and the vicious cycle continues.

Domestic violence is another major factor of homelessness, especially in women. This goes hand in hand with mental illness, which can spur domestic violence and victim abuse. Since many hospitals were closed in the 1980s to de-institutionalize the mental health industry, patients have become homeless.

Finally, substance abuse is another major cause of homelessness. Even Hollywood actors have fallen into homelessness when they fall to addiction. No one is immune to harmful substances, no matter how much money or fame they have.