Dealing with Medical Debt

The number of American citizens who are unable to clear medical debt is spiraling out of control. A recent piece of research in the August 2009 issue of the American Journal of Medicine showed that 62.1% of all 2007 bankruptcies were associated with unaffordable healthcare costs. In fact, so many citizens need help paying medical bills that it has led to the introduction of the term medical bankruptcy.






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Diabetes and neurological disorders, such as multiple sclerosis, were the cause of the largest liabilities. The average amount owed was $26,971 and $34,167, respectively. Almost half of those filing for medical bankruptcy filed due to hospital bills and 18.6% because of the associated cost of prescription drugs and medication.

A total of 77.9% of those filing for medical bankruptcy already had comprehensive health insurance before developing their life-changing illness. Perhaps more surprisingly, 60.3% had private coverage in place at the beginning.

It isn't just low earners who need help with medical bills; two-thirds owned their own home and a further three-fifths had a college education behind them.

It is perhaps less surprising to discover that unaffordable medical bills often coincided with a change in personal circumstances. The most common occurrence was that the illness meant that the main breadwinner was unable to work due to poor health. This regularly led to redundancy and the loss of any associated health insurance.

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This section is dedicated to those who need help paying their medical bills. Assistance will range from help challenging hospital bills to different debt solutions aimed at helping American families escape financial difficulties.