Medical Bankruptcy in the U.S.

Photo credit: CNBC

According to NerdWallet Health (a division of the price-comparison website), close to 2 million Americans will declare bankruptcy protection in this year due to not being able to pay their medical bill costs. It’s an alarming discovery that unveils health care as the number one cause of bankruptcy filings in the U.S.

CNBC discussed the NerdWallet Health findings, saying, “if you think only Americans without health insurance face financial troubles, think again.”

Close to 10 million adults with year-round health insurance will still become swamped with unpaid medical bills in that same year.

“Close to 10 million adults with year-round health insurance will still become swamped with unpaid medical bills in that same year.”

Nerdwallet Health Vice President Christina LaMontagne admits that too many Americans are struggling:

Credit: Belite Mexico

“With an average American family bringing home $50,000 in income, a high medical bill and a high-deductible insurance plan can quickly become something they are unable to pay. If you have an out-of-pocket maximum of $5,000 or $10,000, that’s really tough.”

The solution to such a reality won’t be easy, she explains, nor will it be completely remedied by the Affordable Care Act. The Act will certainly provide Americans with more coverage – but the problem isn’t necessarily coverage. “I don’t think Obamacare is going to get rid of the situation,” LaMontagne says, “The data suggests that already-insured Americans are struggling. With the expansion of insurance, it doesn’t seem like that problem will go away entirely. It’s not a panacea.”

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