Sudden medical debt is a leading cause of bankruptcy, according to many studies The Senate?s planned vote on the Better Care Reconciliation Act this Thursday has turned this week into a frenzy of debate and deal-making among senators and Republican leaders. With the CBO score forthcoming?a review of the bill?s potential impact by the non-partisan Congressional Budget Office?every potential side effect of this far-reaching bill is being scrutinized as politicians weigh their decision to support legislation that will repeal and replace the Affordable Care Act, or Obamacare.
One key factor they may want to keep in mind is the connection between higher medical costs for individuals and the likelihood of bankruptcies and foreclosures.
Much of this year?s heated healthcare debate has focused on the successes and shortcomings of the Affordable Care Act (ACA). One of the lesser-discussed benefits of ACA has been a decline in sudden medical debt, which has a cascading effect on mortgage payments, foreclosures, and real estate. According to a Money article from May, bankruptcy filings in the United States dropped by half between 2010 and 2016, falling from 1,536,799 to 770,846. According to experts, many factors contributed to the decline in personal bankruptcy during that period, including an improving economy and changes to bankruptcy laws in 2005. But ?almost all agreed that expanded health coverage played a major role in the marked, recent decline.? While not every filin...