Posted: 06/08/09
Medical expenses contributed to almost two-thirds of all bankruptcies in 2007, a number that experts say is likely now even higher now due to the current economic downturn. Of the more than 2,300 "solidly middle class" people surveyed, nearly 78% of them had health insurance at the start of the bankrupting illness, including 60 percent with private coverage. In many instances, those surveyed were hit with high medical bills and loss of income due to the illness, which commonly lead to job loss and concurrent loss of work-based health insurance.
Even well insured families had to cope with high out-of-pocket medical costs, deductibles and uncovered services. Medical bills for medically bankrupted families with private insurance averaged $17,749, compared to $26,971 for the uninsured and $22,568 for those who initially had private coverage but lost it during their illness. Hospital bills were the largest single expense.
Surveyors noted that insurance alternatives are needed, as health insurance offers little protection. Most insured people have policies with so many loopholes, co-payments and deductibles that one major illness can destroy finances. Healthcare discount cards have long been thought to be one insurance alternative since they can help lower out-of-pocket costs.
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Forbes: Medical Bills Driving Most Middle-Class Bankruptcies
