Health is wealth, the saying goes. Equally as true is the saying, health takes wealth. With the continually increasing costs of health care, health insurance is becoming more and more of a necessity. Fortunately, more Americans are purchasing health insurance as a result of the Affordable Care Act, which is allowing more people to receive the medical care they need.
Unfortunately, simply having health insurance does not exempt anybody from running the risk of drowning in medical debt. Studies have shown that those with health insurance are less at risk of financial failure due to medical expenses, but even with excellent insurance, individuals and families can find themselves in the midst of a medical crisis which drains their finances and puts them at risk of bankruptcy.
Bankruptcy, as some readers may be aware is among the top causes of bankruptcy filings. And while it may be true that medical bankruptcy is generally less of a possibility for those with health insurance, it really depends on the terms o the insurance. Policies with high out-of-pocket costs are not going to be as helpful for the insured. Because those with financial troubles tend to have higher deductibles, health insurance may not do much to help in a medical crisis.
While medical bills certainly are a prominent cause of bankruptcy, individuals and families with significant medical bills often have other financial troubles as well. Though bankruptcy is not a course of action a debtor should take lightly, it can become necessary when things get back enough.
In our next post, we’ll continue looking at this issue, and why it is important to work with an experienced bankruptcy attorney when considering bankruptcy.