Medical expenses responsible for many bankruptcies

On Behalf of | Nov 12, 2018 | Chapter 7

As many Americans struggle to keep up with their credit card debt, mortgage and other expenses, a number of people are forced to file for bankruptcy as a last resort. The most common cause of bankruptcy, however, is related to medical debt. Many people in Connecticut and across the United States can no longer keep up with extensive health care expenses. It is reported that one in three families in the U.S. struggle to pay for medical treatments, racking up credit card debt and draining their bank accounts in the process.

One reason why medical expenses have mounted may be the issue of high deductibles, copays and premiums. People are forced to pay high premiums to receive their insurance coverage, but then must pay a high out-of-pocket deductible before the insurance plan starts to cover anything. Furthermore, there are co-pays during that time and even after the deductible has been met.

Another reason for excessive medical debt may involve the irregular prices of treatment throughout the nation. Healthcare prices change dramatically depending on what type of injury you have, insurance coverage and where you are located in the U.S. For example, the National Institutes of Health reported that a sprained ankle can cost anywhere from $4 to as much as $24,000 when treated in emergency rooms in different states. People who have illnesses that require long-term treatment can accrue heavy expenses rather quickly. It is factors such as these that have contributed to excessive medical debt and the subsequent filing for bankruptcy.