Bankruptcy might seem like it’s uncommon, but the truth is that it happens more than you may believe. One of the most common issues leading to bankruptcy in America is health care. Despite the Affordable Care Act’s intentions, costs have risen and driven more people into debt. This has led to a continuation of people filing for bankruptcy because of health care.
The ACA was designed to reduce the cost of health care in America, but high premiums and other factors have resulted in little changing in terms of finances. Medical bills can be so high that they cause families to limit their necessities, like clothing or food, while they try to pay their medical bills. In many cases, tight budgets and high medical costs lead to bankruptcy.
Approximately two-thirds of bankruptcies in the United States are a result of medical bills. What’s more shocking is that of the 62 percent of bankruptcies caused by medical costs, people were actually insured in 75 percent of those cases. Insurance has had little impact on the expense of medical care, leaving patients suffering as they try to make up the difference.
Even if people don’t choose bankruptcy as a way out of medical debt, medical debts can continue to impact them for many years. It’s something that should change but hasn’t. As someone who is currently struggling with health-related expenses, bankruptcy can be a good option for you. Your attorney can give you more information on the benefits of bankruptcy and if it could be the right choice for your financial situation.