Community organizer working to make the world more accessible and inclusive for everyone.
Layla S
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I agree, getting rid of medical debt is great but it doesn’t fix the underlying issue: unaffordable healthcare, especially for people with disabilities and chronic illnesses.
Some provisions in the affordable care act such as preventing insurers from not covering someone based on pre-existing conditions have helped reduce medical debt. Ideally, I would like to see a universal healthcare or a medicare for all type of model so that everyone can get the coverage that they need. There is a lot of data about how expanding medicare in different states has saved lives, resulted in less emergency room visits, etc.
“Two-thirds of people who file for bankruptcy cite medical issues as a key contributor to their financial downfall.” https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html
This results from several factors: Having to take time off work for medical treatments (the United States does not offer paid sick leave in all states), having to change work schedules/reduce hours, and the costs of treatments themselves.
This is directly from the Kaiser study which found that medical debt impacts 100 million Americans. Overall, an estimated 41% of people — or about 100 million adults — currently face such debt, ranging from under $500 (16%) to $10,000 or more (12%), according to a report from the Kaiser Family Foundation. Using $2,500 as a base level, 56% who carry medical and/or dental debt owe below that amount and 44% owe that much or more.
However, some of that medical debt may not have shown up in past estimates or surveys. For example, some is on credit cards (17% of adults are paying that way) or is being paid off over time directly to a doctor, hospital or other health-care provider (21%).
For instance, 63% with current or recent debt (within the past five years) said it caused them to cut spending on food, clothing and other basics — including 51% of those with annual household income above $90,000. Nearly half (48%) with such debt said they used up all or most of their savings to pay it off.
I do think it could have a positive impact on people’s well-being though, especially since medical debt is linked to worse health outcomes. Medical debt also impacts people’s credit scores and overall financial well-being.
I’m still reading into it but I found this: “Personal debt and financial hardship are strongly correlated with poor mental health, which can exacerbate adverse effects of other health conditions. A Consumer Financial Protection Bureau (CFPB) study found that medical debt worsens mental health conditions and is strongly correlated with increased chance of suicide. Many people who carry medical debt describe feelings of anguish and have higher rates of anxiety and depression. Medical studies have shown that poor mental health is a risk factor for chronic health conditions, and vice versa.”
Thanks for sharing! I am new and did not see it. Have a good night!
Thank you for the welcome and your insight! I did find this specific focus group report conducted by RIP Medical Debt that you may find of interest. https://ripmedicaldebt.org/wp-content/uploads/2022/08/Focus_Group_Report_August.pdf
Key Takeaways:
Having health insurance didn’t protect them. Some focus group participants thought they had “good” health coverage when they incurred their medical debt while others were uninsured. They agree having health coverage does not protect you from big bills or medical debt. They believe hospitals (most Atlanta-area hospitals were mentioned), providers, and insurance companies find loopholes in order to send large and unexpected medical bills to people.
Those who had debt abolished by RIP Medical Debt say it was extremely helpful. They are grateful and say it made a difference. It relieved the constant pressure of their debts. Some also sought health care services once their debt was paid – care they had been putting off – because they felt less vulnerable. And at least two Atlanta residents said having their medical debt abolished was a catalyst to paying down other debts – they could see the light at the end of the tunnel.
Debt creates more debt. Going into medical debt means they start falling behind in other areas too. Some go into credit card debt to pay off medical bills. Others miss car payments or ignore student loans. Medical bills and debt can cause a larger financial spiral. Some see their credit affected which has knock-on effects that impact their ability to move to a better neighborhood, get approved for loans, etc.