Revisiting the Issue of Medical Bankruptcies
Given the way in which questions about medical debt and universal healthcare have become prominent in news cycles concerning presidential nominee debates, the issue of medical bankruptcy is on a lot of minds. According to a recent article in the Los Angeles Times, Bernie Sanders has repeatedly asserted that “medical bills drive 500,000 Americans into bankruptcy every year.” That article emphasizes that The Washington Post has done fact-checking on that number, suggesting that it is higher than the actual number of medical bankruptcies in a particular year. However, as the Los Angeles Times article underscores, the figure of 500,000 Americans seeking bankruptcy protection due to medical debt is based on a peer-reviewed study published in the American Journal of Public Health.
With news stories highlighting the issue of medical debt and bankruptcy, it is a good time to revisit the issue and to consider the ways in which debt from hospital bills, surgeries, and other health care often leads to consumer bankruptcy.
Medical Debt is Uncommon in Other Developed Countries
The U.S. is anomalous in the amount of medical debt that its consumers face and the way in which it often results in those consumers filing for personal bankruptcy. As the article argues, medical debt is “virtually unique to the U.S. among developed countries.” The article goes on to explain that, “when experts from Japan and Europe were asked by the PBS program ‘Frontline’ about the prevalence of medical bankruptcy in their countries, some had trouble even comprehending the question.” In other words, bankruptcy due to medical debt is not a common issue in other developed countries outside the U.S.
One of the markers of the problems with the U.S. healthcare system, the article contends, is the prevalence of GoFundMe campaigns to help pay for medical debt. Indeed, according to the article, “GoFundMe reports that it hosts 250,000 medical campaigns per year, raising more than $650 million a year.” To put it another way, the pervasiveness of medical-related GoFundMe campaigns suggests that many Americans, even those with health insurance, cannot afford their medical bills.
Health Insurance Does Not Prevent Substantial Medical Debt
While some people in the U.S. remain uninsured, most Americans with a substantial amount of medical debt are not actually uninsured. To be sure, “even households seemingly well-covered by employer health plans can face financial trouble.”
Data from the Kaiser Family Foundation suggests that about 40% of consumers report that they have experienced problems paying medical bills despite having insurance, and about 50% admit that they have postponed or avoided medical treatment or certain types of medications due to the high costs. Nearly 20% of consumers report that they have had to make significant sacrifices in their lives in order to pay the costs of healthcare.
Of consumers who have filed for bankruptcy in the past several years, almost 67% indicated that medical bills play at least some role in their decision to file.
Contact a Bankruptcy Lawyer in Oak Park
If you need assistance filing for bankruptcy, or if you have questions about bankruptcy and medical debt, an Oak Park bankruptcy lawyer is here to help. Contact the Emerson Law Firm to speak with a consumer advocate today.
See Related Blog Posts:
Should I File for Bankruptcy Over Student Loans?
Five Things to Know About Chapter 7 Bankruptcy for Consumers
With news stories highlighting the issue of medical debt and bankruptcy, it is a good time to revisit the issue and to consider the ways in which debt from hospital bills, surgeries, and other health care often leads to consumer bankruptcy.
Medical Debt is Uncommon in Other Developed Countries
The U.S. is anomalous in the amount of medical debt that its consumers face and the way in which it often results in those consumers filing for personal bankruptcy. As the article argues, medical debt is “virtually unique to the U.S. among developed countries.” The article goes on to explain that, “when experts from Japan and Europe were asked by the PBS program ‘Frontline’ about the prevalence of medical bankruptcy in their countries, some had trouble even comprehending the question.” In other words, bankruptcy due to medical debt is not a common issue in other developed countries outside the U.S.
One of the markers of the problems with the U.S. healthcare system, the article contends, is the prevalence of GoFundMe campaigns to help pay for medical debt. Indeed, according to the article, “GoFundMe reports that it hosts 250,000 medical campaigns per year, raising more than $650 million a year.” To put it another way, the pervasiveness of medical-related GoFundMe campaigns suggests that many Americans, even those with health insurance, cannot afford their medical bills.
Health Insurance Does Not Prevent Substantial Medical Debt
While some people in the U.S. remain uninsured, most Americans with a substantial amount of medical debt are not actually uninsured. To be sure, “even households seemingly well-covered by employer health plans can face financial trouble.”
Data from the Kaiser Family Foundation suggests that about 40% of consumers report that they have experienced problems paying medical bills despite having insurance, and about 50% admit that they have postponed or avoided medical treatment or certain types of medications due to the high costs. Nearly 20% of consumers report that they have had to make significant sacrifices in their lives in order to pay the costs of healthcare.
Of consumers who have filed for bankruptcy in the past several years, almost 67% indicated that medical bills play at least some role in their decision to file.
Contact a Bankruptcy Lawyer in Oak Park
If you need assistance filing for bankruptcy, or if you have questions about bankruptcy and medical debt, an Oak Park bankruptcy lawyer is here to help. Contact the Emerson Law Firm to speak with a consumer advocate today.
See Related Blog Posts:
Should I File for Bankruptcy Over Student Loans?
Five Things to Know About Chapter 7 Bankruptcy for Consumers
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