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Millennials may be in need of medical debt relief

On Behalf of | Aug 6, 2018 | Chapter 7 Bankruptcy, Firm News

There is no getting around it — the cost of health care is astronomical. Medical costs are completely out of reach for the average Florida resident, and not just for catastrophic events. Generic costs associated with seeking care for minor illnesses and injuries is enough to push people into debt, and one group of people seems to be affected more than others — millennials. This could potentially lead to more young adults seeking debt relief through bankruptcy.

A 2017 report from the Urban Institute stated that medical debt is the most frequently cited financial burden in the nation. Data from the Consumer Financial Protection Bureau seems to back this up, as it found that one out of every six Americans has at least one past-due medical bill sitting on their credit report. Of those with past-due medical debt, 27-year-olds made up the largest group of debtors at 11 percent. Under the Affordable Care Act, adults up to 26 can stay on their parent’s insurance plans.

Insurance is not a guarantee that people will be able to afford medical care. About 75 percent of people aged 20 to 65 reported to the 2016 National Health Survey that they did have health insurance, but still could not afford to pay their medical bills. This is particularly true for individuals on the younger end of that spectrum, as people under the age of 40 are facing a significant wealth stagnation.

Going to the doctor is sometimes unavoidable, and patients are often faced with the unfair burden of significant debt for simply falling sick. Debt relief may be necessary for those in Florida who are struggling to survive financially. For these individuals, bankruptcy can be an effective approach for discharging overwhelming debt.

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