Medical bills are reported to be the leading cause of death in the United States. A study states that 62.1% of bankruptcies were due to medical problems. About 62% of people highlight health bills as the leading cause of bankruptcy in the United States. It's more surprising to note that more than three-quarters (78%) of those people had some type of insurance, according to statistics on medical bankruptcy. This number indicates that insured medical bankruptcies are a reality in the United States.
Nearly 59% of those surveyed in the medical bankruptcy study cited medical expenses as an important factor in filing for bankruptcy. At the same time, 44% mentioned medical problems that had led to the loss of work, further demonstrating how these problems are intertwined. This percentage is not expected to decrease in the coming years, unless there is a dramatic change in the US health system. A study by CRIF Bürgel on medical bankruptcy statistics in Germany shows that the main reason for bankruptcy is the reduction of work. For more revealing facts and statistics on medical bankruptcies by country and especially in the US, read on.
Just over 44% of the people who participated in the medical bankruptcy study admitted that overspending or living beyond their means was a contributing factor to their bankruptcies. Every year, about 530,000 families in the United States file for bankruptcy as a result of rising health care costs. Although the United States leads in medical bankruptcies around the world, other countries have them as well. For all non-medical bankruptcies in the US, the average age of filers is 43.3 years, while the average person who files for bankruptcy is 44.4 years. This is the main reason why two-thirds of all personal bankruptcies in the US are due to medical bills.
While there are medical bankruptcies in Europe, Canada and Australia, Americans have it even worse. Since the study estimated medical bankruptcies based on changes in filing trends before and after hospitalization, not taking into account the increase in the baseline likely introduced a substantial downward bias. The reality is that healthcare costs are one of the leading causes of bankruptcy in America. Despite having insurance coverage, many Americans are unable to pay their medical bills due to high deductibles and co-payments. This has led to an increase in medical bankruptcies across all age groups and income levels. The only way to reduce this number is by reforming our healthcare system and making it more affordable for everyone.
