Medical Bankruptcies May Not be as Common as Thought

“Medical bills can push patients over the financial cliff, but a new study says this may not happen as often as previous research suggests,” the Denver Post reports.

“Hospitalizations cause only about 4 percent of personal bankruptcies among non-elderly U.S. adults, according to an analysis published Wednesday in the New England Journal of Medicine.”

“This contrasts with previous research by former Harvard professor and current U.S. Sen. Elizabeth Warren and others that pointed to medical reasons as the trigger for more than 60 percent of U.S. bankruptcies.”

“In the new study, researchers tracked the credit reports of more than a half million adults under 65 in California who had a hospitalization between 2003 and 2007 that wasn’t tied to childbirth. They found that hospitalizations clearly forced some patients into bankruptcy in the years following their stay, said study co-author Matthew Notowidigdo, a Northwestern University economist.”

“It just may not happen as frequently as the other research indicates.”

For more information on the issues surrounding medical debt, please contact RIP Medical Debt.