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Medical Costs Responsible for Majority of Bankruptcies

The New York Times recently published an article about a topic that is extremely important – the high and sometimes devastating cost of medical care. The article cites a recent study that found that almost two out of every three bankruptcies stem from medical bills. What's more, this data was collected before the economic crisis, so the numbers are probably much higher now.

What may come as an even bigger surprise is that this doesn't just apply to people without insurance. The study found that among families who were bankrupted by medical costs, those with private insurance reported average medical bills of $17,749, compared to $26,971 for those without insurance. And then there are those people who lost their insurance during the course of their treatment – they incurred an average of $22,568 in costs.

The study found that hospital costs accounted for 48% of expenses, prescription drugs for 18.6%, doctor's bills for 15.1%, and insurance premiums for 4.1%. The conditions that resulted in the highest out-of-pocket expenses were:

1.    Neurologic - $34,167

2.    Diabetes - $26,971

3.    Injuries - $25,096

4.    Stroke - $23,380

5.    Mental illness - $23,178

6.    Heart disease - $21,955

As my law firm has seen time and time again with our clients, not only do people have to deal with the physical and emotional repercussions of being injured or sick, but they also have to worry about their financial well-being. Navigating the medical and insurance systems can be extremely difficult when you're 100% healthy, let alone when you need to focus on your health. Helping our clients secure the money that is so crucial to their recovery and peace of mind is something that we take very seriously.