Medical debt has long been one of the leading causes of bankruptcy in Texas and every other state in the union. Medical debt can strike anyone at any time; Even individuals in high tax brackets who have insurance. AS the nation has pushed for universal healthcare that works for everyone, here is the latest on medical debt and how it can drive even the most financially stable to the point of bankruptcy.
Medical Debt Bankruptcies
On February 6th, 2019 the American Journal of Public Health published a survey conducted by attorneys, physicians, and a sociologist on bankruptcy cases filed from 2013 to 2016. Out of almost 1,000 people, the study found that over 66% of respondents blamed medical expenses or work loss due to illness as a leading contributor to their bankruptcy.
Can Health Insurance Prevent bankruptcy?
Despite the aims of the Affordable Care Act (ACA) in 2010, medical debt continues to be a primary factor in nearly 65% of all bankruptcy cases in America. Even consumers with excellent health insurance can be left in financial ruin by medical debt. Americans who have significant savings, good paying jobs, and medical insurance can still battle with mounting medical bills after a lengthy hospital stay, emergency surgery, or who contract a chronic illness or disease that requires continuous monitoring and treatments. After the implementation of the new health care laws in America, researchers found that a higher percentage of individuals blamed medical debt as a cause of their bankruptcy.
Bankruptcy Eliminates Medical Debt
While knowing your rights and working to negotiate a discount from your medical service providers can help consumers avoid the pain of medical debt, few forms of debt relief work better than bankruptcy at eliminating medical debt. Because medical debt is considered a non-priority, unsecured form of debt, individuals can use bankruptcy to remove medical debt for good. Because successive bankruptcy discharges can only be awarded to a consumer every 2 to 8 years depending on which type of bankruptcy you file, it’s relevant to time your case right. Contact a Rio Grande bankruptcy attorney to find out your best options for eliminating medical debt and how to ensure you get the debt relief you need.