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Medical Bills Reported as #1 Cause of Personal Bankruptcy

On Behalf of | Jul 10, 2013 | Medical Bills and Bankruptcy

We recently discussed the link between healthcare costs and bankruptcy in our blog titled “Medical Issues Can Lead to Bankruptcy.” According to CNBC, recent studies by NerdWallet Health, show startling statistics revealing that healthcare is the leading cause of personal bankruptcy filings. It is estimated that medical bills will contribute to approximately 1.7 million people seeking bankruptcy relief in 2013, surpassing credit card debt or foreclosures as the cause of financial hardship. In its study, NerdWallet Health analyzed data from the U.S. Census, Centers for Disease Control, the federal court system and the Commonwealth Fund. The report estimates that in America in 2013:

  • 56 million people under age 65 will have trouble paying medical bills.
  • Over 15 million adults (ages 19-64) will spend all of their savings to pay medical bills.
  • Nearly 10 million adults (ages 19-64) will be unable to pay for basic necessities due to their medical bills.
  • More than 16 million children live in households struggling with medical bills. and
  • More than 25 million adults (ages 19-64) will not take their prescription drugs as indicated, including skipping doses, taking less medicine than prescribed or delaying a refill to cut down on costs.

The Affordable Care Act which is predicted to give more people insurance coverage is not likely to solve the entire problem. The study shows that having health insurance does not keep you from becoming one of the above statistics. NerdWallet estimates nearly 10 million adults with uninterrupted health insurance coverage will still accumulate medical bills that they can’t afford to pay in full. If you are struggling to pay your healthcare expenses and you want to learn how filing a bankruptcy could benefit you, contact Levitt & Slafkes, P.C.. If you are interested in learning how filing a bankruptcy case can benefit you, contact Levitt & Slafkes, P.C., at 973-323-2953. You can also reach us by filling out our online form. We represent debtors in Chapter 7, Chapter 13 and Chapter 11 filings. Let us help you get the fresh financial start you need today.