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Medical Bills Continue to Be Leading Cause of Consumer Bankruptcy Filings

Posted By admin || 5-Nov-2012

A 2007 study completed by the American Journal of Medicine looked at statistics of consumers who filed bankruptcy and found that 90 percent of consumers who filed bankruptcy due to mounting medical bills had $5,000 or more in medical debt .  Even consumers with medical coverage have been subject to increased medical costs since their insurance may offer limited coverage. Some consumers may have even mortgaged a home to help cover medical costs.

Many consumers who have filed during this time period experienced other issues including illness and job loss.  But when it comes to certain medical needs the costs tend to add up quickly, even when you pay out-of-pocket costs to have the insurance company cover the remaining amount.  In general, insurance companies may cover between 60 to 80 percent of medical-related costs.  In many cases the insurance company may pay a certain percentage for care such as a diagnosis or surgery.

But a factor that ends up hurting a lot of consumers include paying for prescription medicines or costs not covered by insurance related to hospital stays.  Medical costs related to a cancer diagnosis for example could top near $25,000 depending on medical services based at fair market prices. Even though many insurance plans offer a stop-loss provision for additional consumer protection in the case of a catastrophic injury or illness, many consumers may need to pay thousands in out-of-pocket costs before the insurance company picks up the tab.


Categories: Medical Bills
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