Understanding Medical Bankruptcies by State in the US

Medical bankruptcies are a harsh reality for many Americans. In 2019, over 530,000 people in the US filed for bankruptcy due to medical expenses.

The problem is not just a matter of individual financial struggles. In fact, medical bankruptcies are a significant contributor to the national debt. According to the American Journal of Public Health, medical bankruptcies cost the US economy around $150 billion annually.

Some states are more affected than others. For example, in West Virginia, medical bankruptcies are more common due to high rates of chronic disease and limited access to healthcare.

Medical bankruptcy is a serious issue in the US, affecting many Americans. In fact, 26% of American adults say they or a household member in the past year have encountered difficulties paying medical bills.

These difficulties can lead to financial hardships that come from medical bills, causing anxieties and postponing treatment. People may fear taking on new debts, or they can't keep up with the current ones that they already have.

One in three Americans delays receiving care because of the cost, and 51% of adults with employer health coverage said that they or someone in their household either skipped or delayed medical services due to cost.

Medical expenses adversely impact over two million people, and 44% of those who reported having problems paying medical bills said that these bills had a major impact on their families.

To put this into perspective, here are some statistics on the impact of medical bills:

Organizations are intervening to alleviate the burden of medical debt, such as RIP Medical Debt, a nonprofit that buys consumer debt from healthcare providers using donated funds.

Healthcare costs are skyrocketing, making it difficult for people to afford their medical bills. The average cost of family premiums has increased by 54% since 2009, while wages have only risen by 26% over the same period. This means people are having to pay more out of pocket for healthcare, leading to financial struggles.

Many Americans are struggling to pay their medical bills, with over one-quarter of the population facing this issue. In fact, 50% of Americans had medical debt in 2021, up from 46% in 2020. This is a significant problem, as it can lead to medical debt being sent to collections, negatively impacting credit scores.

Medical debt can have serious consequences, including bankruptcy. In 2011, out-of-pocket medical costs contributed to 26% of personal bankruptcies for low-income households. This is a stark reminder of the financial burden that medical debt can place on individuals and families.

High-deductible health plans can exacerbate this problem, with out-of-pocket costs reaching up to $7,050 for a single person and $14,100 for a family. Unfortunately, half of people with high deductible plans can't afford a bill equal to their deductible without going into debt.

The average hospital cost in the US is a staggering $2,607 per day, with the average overnight stay jumping to $11,700. This is a significant financial burden, especially for those who are already struggling to pay their medical bills.

Here are some key statistics on the financial burden of medical debt:

These statistics highlight the significant disparities in medical debt across different regions of the country. It's essential to address this issue to ensure that everyone has access to affordable healthcare.

The COVID-19 pandemic has brought attention to the issue of medical bankruptcy, but it's not a new problem. In fact, medical debt has been a significant contributor to bankruptcies for decades. A 2001 study found that 46.2% of bankruptcies were healthcare-related, and by 2007, this number had increased to 62.1%. This is a stark reminder of the long-standing issue of medical debt in the US.

Medical debt can have a significant impact on people's lives, causing financial hardships that affect not just their wallets, but also their health and well-being.

Financial anxieties caused by medical bills can lead to people delaying or forgoing medical treatment, which can have serious consequences for their health.

According to a poll by the Kaiser Family Foundation, 26% of American adults say they or a household member in the past year have encountered difficulties paying medical bills, and 12% say the bills had a major impact on their family.

Many people struggle to pay their medical bills, and as a result, they may turn to debt, including credit card debt, which can further exacerbate the problem.

In fact, a study by the University of Illinois professor Robert Lawless found that six out of 10 persons 65 and older who file bankruptcy do so because they can't afford to pay their enormous medical bills.

Here are some alarming statistics on the effects of medical debt:

Organizations are intervening to alleviate the burden of medical debt, including nonprofits that pay medical bills on behalf of debtors, and healthcare providers that offer payment plan options to help patients pay over time.

The state with the highest medical bankruptcy rate is Mississippi, where 1 in 5 people filing for bankruptcy cited medical debt as the primary reason.

Medical debt is a significant problem in Mississippi, where the average cost of a doctor's visit is $143 and the median household income is just $43,989.

In Oklahoma, medical bankruptcies are more common than in any other state, with 1 in 4 people filing for bankruptcy due to medical expenses.

The high cost of healthcare in Oklahoma contributes to these numbers, with the state ranking 46th in the country for health insurance coverage and 47th for access to healthcare.

In West Virginia, medical bankruptcies are most common among those with lower incomes, with 71% of filers earning less than $50,000 per year.

The state's high rates of obesity and smoking also contribute to the prevalence of medical bankruptcies in West Virginia.

In Texas, medical debt is a major contributor to bankruptcy, with 55% of filers citing medical expenses as a primary reason.

The state's large and growing population, combined with high healthcare costs, contribute to these numbers.