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Medical debt bankruptcy is filing bankruptcy due to medical bills. It is more common than most might imagine. According to a recent USA Today article, medical debt is the number one cause of filing bankruptcy in America. Sacramento is no different. It is a significant factor in forcing many bankruptcies. The filing of a medical debt bankruptc...
Medical care continues to be one of consumers’ biggest costs. Understandably, then, medical insurance is vital. Health insurance holes, though, can leave some exposed. Health insurance may not cover some costs or other procedures. It may cover more but come with higher co-pays. No matter the cause, health insurance holes come with a cost. If you have medical care needs that exceed your insurance coverage, debt can follow.
According to a Harvard study documented in this story, approximately half of consumer bankruptcies are caused by medical bills. Health insurance holes often lead to medical debt. Debt that cannot be afforded.
Like other forms of debt that can’t be afforded, bankruptcy may be a solution. Health insurance holes are a cause of potential debt. Like credit card debt, car repossessions or other unsecured debt, medical bills may prompt consumer bankruptcy. Unlike other forms of debt, though, medical care costs often come with a higher price tag.
If you have health insurance holes that result in uncovered medical bills, those bills are likely larger than your other debts. Tens of thousands of dollars in credit card debt can accumulate over years. Tens of thousands of dollars in medical care costs can accumulate over hours or days. If you are not covered by insurance, dealing with that debt is often impossible.
Given the costs, and repeated increases, in healthcare insurance premiums and co-payments, health insurance holes are increasingly inevitable. If you then need medical care for treatment not covered, debt is an obvious byproduct.
Medical bills are the prime factor for filing bankruptcy in the United States. According to the Huffington Post, as well as numerous other sources, it is the main reason.
Medical bills prompt bankruptcy filings for a variety of reasons, not the least of which is the high price of medical care cost in America. Insurance availability is another ingredient. Though Obamacare has created more coverage in years past, costs have escalated, as have co-payments. The end result is more medical care debt income to cover it.
Medical care is not optional. At least it shouldn’t be. But in America it often is. Faced with the dilemma between medical care and unaffordable expense, bankruptcy may be a necessity. Bankruptcy can deal with medical care debt. But neglected medical care has no cure.
Medical care costs frequently overshadow other financial obligations which, in turn, can cause even further debt. Using credit cards to pay for medical care has become increasingly common. CareCredit is a credit agency devoted to medical care costs and treatment.
Medical care costs, too, often come with aggressive collection tactics. While it does not seem fair, often the most aggressive collection companies and agencies represent medical care providers.
Medical care and prescription costs are some of the most common expenses facing consumers considering bankruptcy in today’s economy. Costs for medical care and prescriptions are outpacing incomes, particularly fixed incomes. The retired and disabled are bearing the brunt of these increases and, with them, their buying power decreases by the day.
Prescription drug costs have exploded, leaving many without necessary drug treatment due to their inability to afford their prescription costs. Rising insurance premiums, co-pays and coverage gaps only exacerbate the problem. It’s not that something has got to give; something already gave.
Consumers are left in the lurch looking to provide for their health and, at the same time, afford it financially. This CNBC article paints the picture.
What then to do? Debt has become a byproduct of healthcare in America. If you can afford to repay the debt, you have a way out. If not, bankruptcy may be your only option. Though bankruptcy is a final straw alternative for many, it is valuable resource for many facing health care and prescriptions costs beyond their budget. Medical and prescription bills are dischargeable debts that are eliminated upon a bankruptcy discharge. Food for thought for those in debt due to healthcare.
Medical bills are some of the some of the most common debts prompting consumer bankruptcies. Though the amount of such debts are often overwhelming, they are dischargeable through bankruptcy proceedings!