Cancer Survivors Dealing with Bankruptcy

One of the common misconceptions about consumer bankruptcy is that it is a tool used primarily by debtors who simply failed to properly manage their finances. Yet as a recent article in Reuters Health makes clear, many Americans—including Chicago residents—who are currently dealing with substantial debt are cancer survivors. Much of that debt is a result of the costly treatments they needed to beat the disease.
What else do you need to know about medical bills and personal bankruptcy?
Rapidly Increasing Cancer Care Costs
The Reuters Health article cites a recent study, which notes, “one-third of working-age cancer survivors go into debt, and 3% file for bankruptcy.” Why are so many cancer survivors dealing with nearly insurmountable debt? In short, the costs of cancer care in our country have increased rapidly in the last several years—“two to three times faster than other healthcare expenses,” according to the authors of the recent study. How much do cancer therapy drugs end up costing? On average, the monthly cost is right around $10,000, but the financial cost can be much higher, sometimes reaching $60,000 per month.
Based on survey data from 2012, the recent study examined more than 4,700 cancer survivors between the ages of 18 and 64. In other words, the researchers looked at survivors who are within an age group such that they likely are still below the common age of retirement. The study ultimately concluded that about 33% of those survivors (or just over 1,500 patients) had “gone into debt because of cancer.” Among those who did go into debt just to beat cancer, more than 50% ended up with medical debt of more than $10,000. Of those survivors, about 3% ended up seeking bankruptcy protection.
Age, Income, and Insurance Type as Risk Factors for Indebtedness
According to the article, the likelihood of going into debt as a result of cancer treatment is largely predictable based on three factors:
  • Younger age;
  • Lower income; and
  • Public health insurance.
Indeed, each of these categories increased the risk of indebtedness and bankruptcy after cancer treatment. Moreover, bankruptcy rates in general are “two times higher for people with a history of cancer than for others.” The financial burdens of cancer treatment are well-known to physicians, such as Dr. Yousuf Zafar at Duke Cancer Center. Dr. Zafar responded to the study’s findings by underscoring their veracity.
Where do most of these high costs come into play? In most cases, for patients who receive treatment outside of a hospital, the highest costs are those of the drugs (e.g., chemotherapy drugs). But depending on the individual patient’s situation, medical bills for hospitalizations, surgeries, and other fees can also add up quickly. And even when patients do not end up with enormous medical bills after treatment is finished, it is often because their family members have taken extra jobs or have sought out other forms of income to help limit debt, according to Dr. Zafar.
Filing for bankruptcy is a complicated process. If you have questions or concerns about managing debt and thinking through your options, an experienced Oak Park bankruptcy attorney can speak with you today. Contact the Emerson Law Firm to learn more about our services.

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