Can Medical Debt Lead to Bankruptcy?
May 17, 2016
How Medical Debt Can Lead to Bankruptcy, Even When You’re Insured
Medical bills – along with credit-card bills and mortgage debt – is one of the leading causes of bankruptcies in America. This year, almost two million Americans will file bankruptcy as a result of unpaid medical bills, and for many of them, this is despite the fact that they have health insurance. Bradenton Bankruptcy Lawyers at Jodat Law Group is here to inform you.
Nowadays, health insurance is no longer the financial safety net that it once was. Today, it is more so just an additional financial burden for families who are living paycheck to paycheck and having to struggle to meet out-of-pocket medical obligations.
No More Peace Of Mind With Health Insurance
Many people who get sick and incur hundreds or thousands of dollars in medical bills end up in financially dire straits, often having to sell their homes or file bankruptcy, even though they have health insurance. This is largely due to the high cost of healthcare in the United States, which is the world’s most expensive country in terms of health care.
This situation also reflects the changing nature of health insurance. Customers have been asked to pay an increasingly larger share of healthcare costs in the form of deductibles and co-payments since the late 1990s.
While the Obama Administration’s Affordable Care Act has offered protection to consumers from rising healthcare costs by mandating more comprehensive health insurance packages, it also allowed for larger deductibles. There is now an underlying trend toward higher cost-sharing that may lead to more people being uninsured. In fact, the number of Americans with health insurance has decreased by approximately 15 million over the last three years. Contact our Bradenton bankruptcy lawyers for a Free consultation face-to-face with a lawyer who will be serving your case.
Paying Health Care Costs
In order to pay their portion of their medical bills, Americans are often required to wipe out their savings, take extra jobs, find roommates, or turn to charity. Even having to pay 20 percent of $30,000 (the average cost of knee replacement surgery) will come to $6,000 – approximately 3.5 times the amount that the average family can save in a year.
Many people turn to credit card debt to pay these out-of-pocket medical costs. But, because credit cards charge such high interest rates, they only end up in a vicious cycle of debt. Once their savings have been depleted and their credit lines are maxed out, they resort to cutting back on their prescription medication and avoiding the doctor – often leading to more healthcare problems and, as a result, more medical bills down the road.
Contact Jodat Law Group, P.A. for More Information
The Bradenton bankruptcy lawyers at Jodat Law Group, P.A. can help assess your financial situation and determine if bankruptcy can help you and your family deal with overwhelming medical bills. Contact us for a Free Consultation regarding your medical bill and bankruptcy case.
