Medical bankruptcy and economy
Medical bankruptcy facts
One reason why estimates are so different is that they are done in different years. Those years were after the Great Depression. As a result, various bankruptcy rates have soared. Consumer bankruptcy rose from 775,344 in 2007 to 1.5 million in 2010. By 2017, this number has dropped to 767721. This is one of the reasons why President Obama is so overpriced. In 2009, 1.4 million people went bankrupt. Even so, Obama's calculations are still a bit high. Multiply 1.4 million bankruptcy cases by 62.1% of Harvard University, and you will get bankruptcy cases caused by 877,372 medical bills.
Researchers disagree on how much medical expenses will lead to bankruptcy. The biggest question in answering this question is that those who file for bankruptcy do not need to explain why. Therefore, the estimate is based on the survey. Different research methods are different. It depends on the definition of medical debt by researchers and respondents.
It also found that the insured was more likely to declare bankruptcy (3%) than the uninsured (1%). Most people may think that their insurance can protect them from medical expenses. They are not prepared to pay for unexpected deductibles and co-insurance costs. Almost a third of people don't know that a hospital or service is not part of their plan. A quarter of the people found the insurance company rejected their claim.
How do those with insurance have so many bills? After the high deductible, co-insurance payment and annual/lifetime limit, the insurance is used up. Other companies refused claims or just cancelled insurance.
It is not a good idea to file for bankruptcy to waive medical expenses. First, the bankruptcy will remain on your record for 10 years. You may not be able to rent an apartment, get a car loan or buy a house. Some employers will therefore reject your job application. In some states, you may lose your home. For example, Nebraska only protects $12,500 in home equity from being confiscated. In general, you may lose $100,968 in assets. The biggest loss is in Delaware, you may lose an average of $125,745.
The best way to avoid medical bankruptcy is to prevent or manage chronic diseases such as diabetes. The high medical expenses caused by the accident are unavoidable. In these cases, there must be a financial buffer. Deposit three to six months' fees into a savings or money market account. Only one-third of Americans have more than $1,000 in savings.