Ivins, Bankruptcy and Disability

Molly Ivins' column in the News and Record this morning discusses legislation related to bankruptcy.  She demonizes bankers for trying to limit the amount of personal debt which individuals are forgiven when they file for bankruptcy.  She cites job losses and medical crises as the cause of many instances of bankruptcy, and further states that this is a problem even among those with health insurance. 

The matter of health care costs contributing to personal bankruptcy is a real phenomenon.  What Ivins does not elucidate, however, is a widely prevalent problem in our society-- inadequate personal coverage with disability insurance.  It is not uncommon that individuals  "go bare" with respect to this type of coverage, and employers sometimes do not offer it.  When  the inevitable medical crisis arises causing job loss and medical expense, there may be no source of income.   Moreover, when this type of event affects the unmarried, the financial impact can be more devastating because there is no second  source of income upon which to rely.

The problem of tying health insurance and disability insurance in our society to employment  has had some negative impacts.  It may be better to have individuals buy and own their own policies, and to allow  private markets to function properly so that coverage can be more affordable and portable.  It may be wise to make it more difficult for men and women to abandon each other via divorce and the socially affirmed formation of single parent families, so that the built-in social safety net of marriage can ameliorate some of these situations.  And it may be better to expect that we all prepare for a future rainy day, even if it means foregoing certain niceties today.