Illness And Injury As Contributors To Bankruptcy

TLDR

In 2001, 1.458 million American families filed for bankruptcy. The study aimed to investigate medical contributors to bankruptcy. Researchers surveyed 1,771 personal bankruptcy filers in five federal courts and conducted in‑depth interviews with 931 of them. About half of filers cited medical causes, implying 1.9–2.2 million Americans faced medical bankruptcy; their average out‑of‑pocket costs were $11,854, 75.7 % had insurance at onset, they were 42 % more likely to experience coverage lapses, and even middle‑class insured families often fall prey to financial catastrophe when sick.

Abstract

In 2001, 1.458 million American families filed for bankruptcy. To investigate medical contributors to bankruptcy, we surveyed 1,771 personal bankruptcy filers in five federal courts and subsequently completed in-depth interviews with 931 of them. About half cited medical causes, which indicates that 1.9–2.2 million Americans (filers plus dependents) experienced medical bankruptcy. Among those whose illnesses led to bankruptcy, out-of-pocket costs averaged $11,854 since the start of illness; 75.7 percent had insurance at the onset of illness. Medical debtors were 42 percent more likely than other debtors to experience lapses in coverage. Even middle-class insured families often fall prey to financial catastrophe when sick.