What Doesnt Kill You Can Make You Poorer
Poor health may not kill you, but it could bankrupt you. And baby boomers who are small business owners may be particularly vulnerable, says a certified financial planner who is also a health care specialist.
States with the highest rates of residents without health insurance also rank among states having the highest levels of personal bankruptcies, according to data from the U.S. Census Bureau, the American Bankruptcy Institute and the Administrative Offices of the U.S. Courts (see chart).
The ABI, Alexandria, Va., reported that the total number of non-business bankruptcy filings was 1.59 million at the end of June 2004, down .8% from the 1.61 million cases filed during the 12-month period ending June 30, 2003.
Even so, according to ABI, total business and non-business filings during second quarter 2004 were the second highest 3-month total in history after a high set in 2003.
Boomers who are small business owners should look at a number of options when seeking to have health care in place, says Christina Povenmire, a certified financial planner with CMP Financial Planning, Columbus, Ohio.
The first option is to get on a spouses health plan if that spouse works for another employer, she says.
Another option, according to Povenmire, is to increase the deductible rather than cutting the benefit or coverage period.