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Debt often fueled by prescription expenses

Many things can lead a person to have a debt level higher than he or she is able to successfully manage. A job layoff or termination or a divorce are among some of the most common reasons that create such a situation. When an unexpected medical condition arises, the medical bills can mount fast, leaving the patient with a whole new crisis on top of the health concern that created the medical expenses to start with. In order to get a fresh start, some people may consider a Chapter 7 bankruptcy if no other option is available.

A 2013 report by NerdWallet suggests that medical expenses and debt is the single most common reason that so many people are filing for bankruptcy today. An estimated 56 million Americans have problems related to hospital bills or other medical costs. Some of this is happening because, despite the Affordable Care Act, the portion of non-covered prescription costs is increasing in many cases.

The United States government estimates that in 2013, American consumers incurred a total of $41 billion in non-covered prescription medication costs. Many people, especially if unable to work, attempt to pay for medications with credit cards or other means until they eventually have no way to keep on top of all of the combined bills and expenses. The need for debt relief due to prescription charges not paid for by medical insurance is a problem for many consumers in the U.S.

If you are struggling to make ends meet due in part to healthcare-related expenses, you may consider a consultation with an attorney. Getting a good understanding of your options can help lead you to a better financial future.

Source: CNBC.com, “Medication costs fuel painful medical debt, bankruptcies,” Dan Mangan, May 28, 2014

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