The Medical Bill Crunch

The great debate in Washington is over the national healthcare system. To many Americans this is a confusing issue because it seems like the politicians have debated and twisted the subject to such a point that we don’t know what they are fighting over. Is it reducing healthcare costs, insuring everyone, raising taxes or something else? Despite this confusion there is one thing that is certain, don’t get sick or hurt because it is going to cost an arm and a leg to get healthy again.
Medical bills are the fastest growing reason for causing individuals to file for bankruptcy. If it’s not the medical themselves that are overwhelming it’s the other bills that individuals fall behind on because of the medical bills that cause them to have to seek relief.
In Grand Rapids and West Michigan we have seen the medical field boom. New technology, new buildings and new people seem to be pouring into the area pretty steadily. This influx of medical facilities and medical staff has not caused the price of healthcare to go down. In fact because the doctors are more specialized there has been an increase in expenses.
Medical bills are responsible for over 60% of bankruptcy filings. This is a sharp increase from the percentage of filings associated with medical bills that occurred at the beginning of this decade.
Many people are under the impression that because they are insured that they are immune from this beast. Everyone is subject to attack. Of those that file because of their crushing medical bills, nearly 75% had medical insurance. These are expenses that grow drastically and it’s out of our control usually.
The one light at the end of the tunnel is that bankruptcy can relieve these medical bills. The holders of these claims are unsecured and have no priority. That means that any bills accumulated prior to filing will be discharged.
Some might think that it’s not worth filing bankruptcy for medical bills because you might not be able to file for bankruptcy protection if something else was to come up in the near future. Yes other financial hardships do come up and after filing there is a certain amount of time that is required to pass before you can file again. This is when it is important to consult an attorney and assess your financial situation prior to these health expenses, what it will be like after you file and how long and under what circumstances you would live if you don’t file.
The ongoing debate in the nation’s capital might be over our heads for now but we do know how medical bills can hurt us right now. Any one that is watching these types of expenses pile up or is trying to unbury themselves should consider bankruptcy as a possible solution.