Illness and Overwhelming Medical Bills Send Many into Bankruptcy
Posted on Thursday, April 2nd, 2015 at 3:53 pm
According to a 2007 study, 62.1% of all bankruptcies have a medical cause and the share of bankruptcies attributable to medical problems rose by 50% between 2001 and 2007. [1] Moreover, a recent article in Forbes highlighted one woman’s story of illness and mounting debt and stated that overwhelming medical bills cause 17-62% of all bankruptcy declarations. [2]
Stephanie Casey Diagnosed with Multiple Sclerosis
The woman featured in the Forbes article, 30-year-old Stephanie Casey, discusses her diagnosis with Multiple Sclerosis and the skyrocketing medical bills and debt associated with the diagnosis. Before the diagnosis, Mrs. Casey and her family were in an ideal situation- they had health insurance, IRA accounts, a sizeable emergency fund, were saving for a home, and no debt. However, the medication for MS rose from $2,800.00 to $3,600.00 per month and even with health insurance, Mrs. Casey was responsible for $250.00 per month. That’s over $3000.00 a year spent just on injections to help slow the progression of MS!
The High Cost of Healthcare
In the article, Mrs. Casey also expresses concern for her future and the future of her family. She states, “If I lose my vision, like 81% of MS patients do, and can’t work–this would mean that I’d no longer be covered by health insurance after 18 months of COBRA–we’re prepared to file for bankruptcy. If I don’t have insurance, and I lose my income, our family would be functioning on my husband’s salary alone to cover a $2,200 a month mortgage–and my $3,500 per month medication.” She goes on to state, “We’d be bankrupt within a few months of running up credit card bills to pay for the drugs, so it would be better for me to file individually, get down to no income and qualify for disability insurance and patient assistance programs from the drug manufacturers.”
Filing for Bankruptcy May Help
Although Mrs. Casey’s situation may seem extreme, many insurance companies in Northern Kentucky cancel coverage when the employee suffers a disabling illness because they become too sick to work, leaving them with medical bills and no insurance.With the rising costs of medical care and the increase of individuals struggling to stay on top, filing for bankruptcy may help relieve some of that debt. A Northern Kentucky Bankruptcy Attorney can help you get a better idea of what disclosures are required in order to file for bankruptcy and what debts will be discharged.
If you are overwhelmed by mounting debt and tired or receiving harassing phone calls from creditors, contact Lawrence & Associates Accident and Injury Lawyers, LLC today. We can help you obtain that fresh start that you deserve!
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