Bankruptcy: the true cost of medical bills

For the countless Miami, Florida, residents contending with substantial medical-related debts, the gravity of the issue is well understood. In fact, it’s no surprise to many Americans that financial challenges stemming from unmanageable medical bills account for a huge percentage of Chapter 7 bankruptcy cases filed every year. That is why seeking the advice of a trusted bankruptcy law lawyer in the face of insurmountable credit card debt and medical costs can go a long way to ensure one’s financial security and peace of mind.

According to the CDC, the increased effectiveness of prescription medications in treating many chronic medical conditions like diabetes and hypertension is contributing to the financial difficulties of millions of people across the country. Almost 30 percent of individuals that participated in one recent study admitted to opting out of taking their medication because they couldn’t afford it. Interestingly, a little more than 20 percent people with medical coverage made the same admission. It is also estimated that the vast majority bankruptcy filings are a result medical debt, according to another report.

The Affordable Care Act (ACA) is expected to play a significant role in the medical costs of Americans; though, it’s difficult to say what that role may be. The share of cost incurred by individuals covered under ACA and employment-related medical plans is on the rise, and some insurance plans do not cover prescriptions.

Because so many Americans are facing high insurance costs coupled with expensive medication bills, they are unable to live within their household budgets. Consequently, millions of dollars in credit card debt is being accumulated by people forced to use their credit cards to cover personal expenses. And, unfortunately, the cycle too often ends in bankruptcy.

Source: cnbc.com, “Medication costs fuel painful medical debt, bankruptcies,” Dan Mangan, May 28, 2014