This year it is expected that 1.7 million American households will be forced to file for bankruptcy due to overwhelming medical debt. This makes medical debt the largest cause of personal bankruptcy filings- surpassing credit card bills and unpaid mortgages, according to new data. Even having health insurance does not shield many Americans from the weight of medical debt.
According to recent data, 25 million Americans hesitate to take their medications in an effort to control medical costs. However, delaying the needed medication is only a short-term fix which can often result in expensive emergency room visits or worse.
More than 20 percent of the population between the ages of 19 and 64 will struggle to pay some sort of medical debt. High-deductible insurance plans, requiring consumers to pay more out-of-pocket expenses, are the most challenging for Americans. With the average American family bringing home just $50,000 a year, an unexpected medical bill coupled with a high-deductible insurance premium can quickly become unmanageable debt.
Obamacare is not likely to fix the problem. While the Affordable Care Act will give more people coverage, those with year-round coverage are likely to still be overwhelmed with medical debt. The number of households forecast to file for medical-related bankruptcies this year is three out of every five filings.
Data from NerdWallet Health revealed that 15 million people will deplete their savings to cover unexpected medical bills. Another 10 million will be unable to pay for necessities such as rent, food and utilities because of those bills.
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If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
