Regardless, the claim that millions of people are filing bankruptcy every year for health care reasons, is just not true. Flat out, not true.
See post 189.
Yeah, I did. It is simply not true.... period.
There are a number of compounding factors that impact bankruptcy, and again, I don't deny that some people are pushed into bankruptcy by medical bills.
However, the idea that it is a primary cause of bankruptcy is a joke.
The research used to claim this, involved anyone with over $500 worth of medical bills. The problem here is, no one goes to bankruptcy court over $500. The cost of filing bankruptcy, would be greater than the amount of medical bills you have.
Second, most people file bankruptcy when they start losing stuff, like losing their car, and their house, and so on. There is no collateral that can be confiscated by a medical bill.
Third, they ignore the ratios. A person could have $500K in debt, and have $1,000 in medical bills, and they considered it a medical bankruptcy. Well that's not a medical bankruptcy. It was not medical $1,000 in medical bills that caused him to file, it was the other $500,000 in other debt, that caused him to file.
Lastly, what all of these people completely ignore, is that many times it is not the debt that really causes the bankruptcy anyway. It is often the loss of income.
It doesn't really matter how big or small your debt is, if you can't work because you have brain cancer. Unless you have no debt, and a large savings, you may end up in bankruptcy, even if you have zero medical bills at all. But again, the reports used anyone with over $500 of medical bills. Well that's ridiculous. With zero income, they would have been bankruptcy with, or without the medical debt.
The claims made are garbage.
Years ago now, I went to the hospital, and got a big massive bill. It didn't bankrupt me. And I only made $20K a year at the time.
I simply paid $100 a month, for a couple of years until I saved up a large enough amount in my bank, to write them a check and pay it off.
Now if I had $50,000 in credit card, auto loans, and a mortgage on the house at the time... ok maybe I would have been bankrupt. But it would have been from all that other debt, not the hospital bill.