Medical expenses have become a leading cause of personal bankruptcy in America. Even with health insurance, millions of people struggle daily to pay unexpected and costly medical bills. YouCaring is here to help you manage extreme financial stress and hardship resulting from an onslaught of costly medical expenses. We want to answer your questions on medical bankruptcy and offer a helping hand.
Medical bankruptcy is more common than you may think. With a barrage of medical bills, people can find themselves suddenly buried in debt. The actual medical bill itself is only the beginning when it comes to medical expenses, since out-of-pocket payments often amount to significant sums. Paying these bills can mean agonizing over liquidating assets set aside for other purposes, such as college tuition, retirement, and home equity. When those resources are depleted, bankruptcy is the only remaining option.
Medical Bankruptcy Changes Your Life
Sliding into medical bankruptcy can begin with a life-threatening diagnosis or unexpected accident that lands you or a loved one in the hospital. As financial costs begin to build, you may start to feel helpless. Every day can bring more stress and physical discomfort, with a desire for some relief. Trying to make ends meet can seem insurmountable, as medical bills take priority over other daily expenses and disrupt your long-term budget.
Medical debt can drastically change the way you and your loved ones live. The Kaiser Foundation released a report that showed how people experience changes to their lifestyle when facing medical bankruptcy. These changes include cutting spending back on food, clothing, and household items; working more hours or getting a second job; drawing down on long-term savings accounts; borrowing money from friends or family; increasing credit card debt; and even take out a second mortgage on a home. And, approximately three out of four nonelderly adults reported foregoing necessary health care, because they were facing problems paying medical bills, according to Urban Institute’s report.
Medical Insurance is not a Buffer for Bankruptcy
Even with health insurance, people can face an avalanche of financial trouble caused by out-of- pocket expenses – which health plans do not cover – and expensive monthly premiums. In 2015,The Kaiser Foundation released a study indicating that employees are paying 83 percent more for premiums than they were in 2005, a growth rate unmatched by their salaries. This has lead to a large number of underinsured people, who struggle with similar financial issues that imperil the uninsured.
Crowdfunding Your Medical Expenses
Crowdfunding enables anyone to financially capitalize on the interconnectivity of the Internet. With the surge of people facing unaffordable medical bills – whether they have medical insurance or not – crowdfunding for medical expenses has become popular and highly successful.You can reach out to potential donors via your social networks to seek funds for meaningful causes.