Is Medical Illness driving people to Bankruptcy?
A study in the American Journal of Medicine recently reported that approximately two-thirds of bankruptcies in the United States were related to medical problems. What they found surprising in this article was the fact that the majority of those who filed for bankruptcy had health insurance. In fact, they found that almost 80% were insured, including some 60% who had private health insurance. Before filing for bankruptcy, these people were solid mid class citizens and then financial disaster hit. Of these people, about two-thirds owned homes and around 66% attended college. Unfortunately, increasing medical bills were met with loss of work hours and lower pay, or loss of job totally. In many instances loss of employment also results in loss of health insurance and soon the families are paying medical expenses out of their pockets, which can often result in the quick disbursement of savings accounts, bonds, and other investments, leaving the family with no way out but to declare bankrup
