Rising Health Care costs Contribute to Bankruptcy
Ask why someone might file bankruptcy; many would give reasons like business failure and out of control spending. While those are some valid reasons, there are others such as loss of employment. There is also one other major factor contributing to bankruptcy and foreclosure filings – health care.
Skyrocketing Healthcare Costs
In 2007, the US spent $2.3 trillion in healthcare – more than 4 times 2007 national defense spending. Other studies show 25% of US households had difficulty paying medical expenses. Nor is that statistic restricted to lower and middle income families. 25% of workers who reported having problems paying medical bills or subsequent debt were high-wage earners. In 2005, Health Affairs showed unexpected illness and injury contributed to 350,000 bankruptcy filings. Another study stated, in the same year, someone filed bankruptcy following a serious health issue every 30 seconds.
Foreclosures are bitter pills to swallow
Foreclosure rates are also affected by increased medical costs. A survey by The Access Project show more than 25% said medical debt contributed to their missing a rent or mortgage payment. Health Affairs also reported 50% of all 2005 foreclosure filings were directly related to a disability causes.
Is there anything you can do?
No wonder the Wall Street Journal and NBC’s August 2007 report showed 50% of Americans cited healthcare as their number one financial concern. If you are facing bankruptcy and foreclosure because of high medical costs, you are not alone. Speak with a bankruptcy attorney today to see what options are available to keep your home and relieve your financial burden. Have your case evaluated for free.
