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A look at the link between health care costs and financial woes

On Behalf of | Jun 29, 2017 | Personal Bankruptcy

Health care is an issue that is extremely important to people in Durham and throughout the United States. It is also an issue that is currently in the spotlight as attempts are being made to undo some or all of the regulations stemming from the Affordable Care Act.

According to Money Magazine, the bill currently being considered and negotiated in the Senate would only provide subsidies for insurance costs to those with very low incomes, leaving some who currently qualify without aid. In addition, the bill in its current form would undo expansions to Medicaid, which 74 million people rely on today, many of whom are seniors and children.

If passed into law, it is predicted that 15 million people would lose Medicaid benefits over the next nine years. This has led some experts to conclude that an increase in the number of personal bankruptcy filings would likely result. While bankruptcy may help alleviate some financial stress for people in the short-term, health care is an ongoing cost and one that will plague people long after their bankruptcy is cleared from their record.

In addition, Curbed points out that when people face higher premium costs for health care, the number of foreclosures are also likely to increase. The nature of medical costs is such that receiving treatment is sometimes unavoidable and not something that can be pushed off. One study found that when faced with financial struggles, many people choose to mortgage their homes in order to pay their medical debts. Therefore, it is evident that when people are forced to pay more for their health care coverage, financial trouble often follows.


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