According to a new national survey, 62 percent of all individual bankruptcies were caused by medical debts or serious illness. This is up 16 percent from six years ago when medical bankruptcies were at 46 percent.
There could be multiple reasons for this increase but higher out of pocket costs is a huge factor. The average cost out of pocket has increased 34 percent from 2004 to 2007.
An increase so large that people insured are facing financial bankruptcy because their plan doesn’t cover enough. This may not always be the case but with some plans, coverage is very limited.
Most of the Americans that are forced to claim bankruptcy are college grads or young middle class homeowners. The scary part is, nearly three fourths of them had health coverage when they originally got sick!
It is very important to do research on the health plan you choose. You are going to want to know when you’re coverage applies and when you will be paying out of pocket. If you’re not sure what to do when it comes to health insurance let GradGuard help you. It’s much better to prepare for future problems then to wait and react!