Connect with us

Hi, what are you looking for?

Money Management

This One Unexpected Event Makes You Twice As Likely To Declare Bankruptcy

The worst thing you could do for your financial well-being is go without health insurance.

According to the American Bankruptcy Institute, having your health insurance policy interrupted makes you twice as likely to file for bankruptcy in the future. The ABI analyzed data from the Bureau of Labor Statistics for over 12,000 people. While correlation doesn’t necessarily equal causation, the researchers found a “strong association” between healthcare coverage interruptions and bankruptcy. This correlation remained steady even though they controlled for variables such as income and debt-to-income ratio. That being said, when someone experiences an interruption to their healthcare coverage, there are usually other factors, such as a divorce or health problem, at play.

According to the study, there’s a “well established connection” between unpaid medical bills and bankruptcy, but whether bankruptcies are primarily filed over unmanageable healthcare costs alone hasn’t been definitively established. Healthcare and the accompanying expenses are a concern that affects Americans across socio-economic backgrounds, as half of all Americans report that they or a family member put off a visit to the doctor or dentist over the cost during the last year.

Previous research on medical debt has estimated that up to two-thirds of consumer bankruptcies are the result of sudden medical issues. These issues include the cost of healthcare and a loss of income due to an illness, or both.

https://www.casho.la/wp-admin/options-general.php?page=ad-inserter.php&start=1#tab-4

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

Last week, a former cybersecurity expert for Twitter, Peiter “Mudge” Zatko, released a whistleblower report on the social platform. In his report, Zatko cited...

News

Zelle is a peer-to-peer payment app and service that can be used by individuals to send and receive money, in a similar vein to...

News

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial...