When most people think of bankruptcy, they think of individuals who spend too much, budget too little and all around mismanage their money. However, according to The Motley Fool, the number one reason people go bankrupt is a reason no one can control — not even the most well-intentioned, financially accountable individual. That reason is medical expenses. If you live in Ohio, have substantial medical bills and would like to relieve yourself of your debt so you can finally get ahead, you may be one of millions to file bankruptcy because of the high cost of health care.
According to the Kaiser Family Foundation, more than 25 percent of U.S. adults struggle to pay their medical expenses. Many people try to place the blame on lack of health insurance, but the report suggests that insured individuals make up a large majority of medical-driven bankruptcies. The same study indicates that an estimated 40 percent of Americans claim the reason they filed bankruptcy is because of the outstanding cost of medical care.
While it may not shock you that the majority of bankrupt individuals were drowning in medical expenses prior to filing, what may surprise you is the extent to which insured Americans struggle to keep up. According to the New York Times, as reported by The Motley Fool, approximately 20 percent of insured individuals aged younger than 65 had a hard time paying off a medical bill over the past year. Of those, 42 percent admit they took on a part time job to help foot the bills, while another 63 percent claim to have eaten up the entirety of their savings. These numbers indicate that having health insurance in no way guarantees you will not fall victim to the high costs of medical care.
The material in this post is meant to inform. It is not meant to serve s legal advice.