60% of Bankruptcies Caused by Medical Bills!
When you think of bankruptcies, you probably think about money mismanagement, credit card debt or tragic financial pitfalls; however, you probably rarely think about medical bills. In recentyears though,the increase in bankruptcies has shown to be prompted by insurmountable medical costs – even for those with health insurance – according to a study conducted by The American Journal of Medicine.
The number of people affected by this unfortunate trend is staggering. In the past six years, the number of bankruptcies due to medical bills has increased by nearly 50%. Even more, most of those who have filed for bankruptcy were well-educated, middle-class homeowners.
You’re probably wondering how in the world medical bills can cause such financial devastation, especially when over 60% of bankruptcies are prompted by them. Here are a few reasons:
- While private health insurance covers certain procedures at certain costs, if the illness carries on long enough and becomes too expensive, the private coverage may diminish, leaving the billswith the patient.
- Large medical bills left in the patient’s lap have often resulted in individuals mortgaging their homes, very often leaving them unableto pay back their home loans.
- The inability to work while ill has resulted in many losing significant income. And after not being able to pay their medical or other bills, theyfile forbankruptcy.
The study conducted by The American Journal of Medicine was completed in 2005. According to representatives of the journal, the numbers could be muchhigher since the recession has become a major issue for many. Since so many jobs have cut back on health coverage, and many others have lost their jobs, the number of bankruptcies associated with medical bills has likely skyrocketed.