Medical costs remain at the top when it comes to debts that burden consumers. In 2016, 43 million American adults - 20 percent of the population - dealt with out-of-control healthcare-related debts negatively affecting their credit.
Individuals in Ohio who have faced medical issues may also be struggling to pay their bills. Medical bills are among the most common ones received by collection agencies, and medical debt is a leading cause of bankruptcy.
The credit reporting agency FICO has stated that it will be changing the way that it handles its scoring of medical debt by reducing the impact that such obligations have on people's credit scores. According to FICO's director of public relations, just because someone has outstanding medical bills, it does not mean that they are likely to be late in making other payments. It is projected that people with outstanding medical debt but an otherwise good payment history will see their credit scores rise by an average of 25 points.
Ohio residents who are faced with serious health problems may struggle under the burden of expensive medications. The issue can become even more frustrating as providers of medical insurance place a greater portion of prescription costs in the hands of consumers. The Affordable Care Act has drawn many newcomers into the insurance system as well, creating challenges as many of these individuals aren't familiar with basic insurance concepts and practices. Medical debt can mount quickly as these people attempt to handle premiums, co-pays and other costs.
Medical debt remains among the most common types of debt plaguing citizens of Summit and throughout the rest of the country. The American healthcare system stands above all others in the world in terms of positive patient outcomes and advances in treatment methods. Yet such exceptional care doesn’t come cheap, and even those who have health insurance often find themselves unable to cover the entire costs of their services. Left alone, patients can quickly see their bills overwhelm them and drive them into financial ruin.
Medical debt is quickly replacing all other forms of the debt as the primary source of financial struggles for families in Cuyahoga Falls and throughout the rest of the U.S. Many may wonder how is it that so many can be without health insurance in today’s day-and-age. Yet surprisingly, many of those who struggle with medical debt do have insurance. So, one may be left to wonder how those with insurance can still end up struggling to afford their medical care.
Bankruptcy is often given a bad rap by Cuyahoga Falls residents. Many may view it as simply a way for irresponsible individuals to get out of having to pay their debts. Yet a majority of people who seek bankruptcy protection are forced into doing so by circumstances that are beyond their control. Chief among these is medical emergencies. No one ever anticipates having health problems, and thus many are unprepared to deal with the expenses associated with them. It should not be surprising then that medical debt has become the most common reason why Americans file for personal bankruptcy.
It’s probably safe to say that no one in Cuyahoga Falls ever anticipates having to file for bankruptcy. Most work very hard at establishing good money management skills. Yet no one can anticipate a major medical emergency such as a serious accident or an extended battle with illness. The expenses associated with dealing with medical issues can quickly add up, turning one’s rosy financial outlook into a bleak nightmare.
Those in Summit who pride themselves on avoiding debt may just be surprised to learn exactly which type of debt is the most prevalent in the United States. According to the Consumer Financial Protection Bureau, medical debt has recently surpassed all other types of debt as the most common amongst American consumers, with nearly $322 billion in out-of-pocket expenses seen in 2013. No one can avoid going to the doctor or hospital forever, and as anyone who has ever had to deal with significant medical expenses can attest to, these debts and quickly go from manageable to overwhelming.
Medical debt remains one of the most prevalent forms of debt carried by residents of Cuyahoga Falls and across the county. Yet unlike other types of debt, it's one that's not easily avoided. No one is expected to refuse medical care when it's necessary, and even those with health insurance can be saddled with enormous medical bills depending upon the type of service that's needed. The fear of drowning in such debt can often lead people to make rash, hurried decisions in order to potentially avoid it.