Medical debt
Encyclopedia
Medical debt refers to debt incurred by individuals due to health care costs and related expenses.
Medical debt is different from other forms of debt, because it is usually incurred accidentally or faultlessly. People do not plan to fall ill or hurt themselves, and health care remedies are often unavoidable; medical debt is often treated with more sympathy than other kinds of debt resulting in advice that people ought not try to convert it to credit card debt
.
- the US being the world's only developed country not to offer universal health care
. In less developed nations those on low income in need of treatment will often avail themselves of what ever help they can from either the state or NGOs
without going into debt, but in the US medical debt has been found by a 2009 study to be the primary cause of personal bankruptcy
.
A 2007 survey had found about 70 million Americans either have difficulty paying for medical treatment or have medical debt.
Studies have found people are most likely to accumulate large medical debts when they do not have health insurance
to cover the costs of necessary medication
s, treatments, or procedures – in 2009 about 50 million Americans had no health coverage. However, about 60% of those found to have medical debt were insured.
Health insurance plans rarely cover any and all health-related expenses; for insured people, the gap between insurance coverage and the affordability of health care manifests as medical debt. As with any type of debt, medical debt can lead to an array of personal and financial problems - including having to go without food and heat plus a reluctance to seek further medical treatment. Aggressive debt collecting has been highlighted as an aggravating factor.
A study has found about 63% of adults with medical debt avoided further medical treatment, compared with only 19% of adults who had no such debt.
Medical debt is different from other forms of debt, because it is usually incurred accidentally or faultlessly. People do not plan to fall ill or hurt themselves, and health care remedies are often unavoidable; medical debt is often treated with more sympathy than other kinds of debt resulting in advice that people ought not try to convert it to credit card debt
Credit card debt
Credit card debt is an example of unsecured consumer debt, accessed through credit cards.Debt results when a client of a credit card company purchases an item or service through the card system...
.
United States
Medical debt is an especially notable phenomenon in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
- the US being the world's only developed country not to offer universal health care
Universal health care
Universal health care is a term referring to organized health care systems built around the principle of universal coverage for all members of society, combining mechanisms for health financing and service provision.-History:...
. In less developed nations those on low income in need of treatment will often avail themselves of what ever help they can from either the state or NGOs
Non-governmental organization
A non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government. The term originated from the United Nations , and is normally used to refer to organizations that do not form part of the government and are...
without going into debt, but in the US medical debt has been found by a 2009 study to be the primary cause of personal bankruptcy
Bankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
.
A 2007 survey had found about 70 million Americans either have difficulty paying for medical treatment or have medical debt.
Studies have found people are most likely to accumulate large medical debts when they do not have health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
to cover the costs of necessary medication
Medication
A pharmaceutical drug, also referred to as medicine, medication or medicament, can be loosely defined as any chemical substance intended for use in the medical diagnosis, cure, treatment, or prevention of disease.- Classification :...
s, treatments, or procedures – in 2009 about 50 million Americans had no health coverage. However, about 60% of those found to have medical debt were insured.
Health insurance plans rarely cover any and all health-related expenses; for insured people, the gap between insurance coverage and the affordability of health care manifests as medical debt. As with any type of debt, medical debt can lead to an array of personal and financial problems - including having to go without food and heat plus a reluctance to seek further medical treatment. Aggressive debt collecting has been highlighted as an aggravating factor.
A study has found about 63% of adults with medical debt avoided further medical treatment, compared with only 19% of adults who had no such debt.
See also
- Health care in the United StatesHealth care in the United StatesHealth care in the United States is provided by many separate legal entities. Health care facilities are largely owned and operated by the private sector...
- Health economicsHealth economicsHealth economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behavior in the production and consumption of health and health care...
- Health insuranceHealth insuranceHealth insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
- UnderinsuredUnderinsuredUnderinsured refers to various degrees of being insured for some real risks and uninsured for others, at the same time.-Health care:Johns Hopkins University professor Vicente Navarro stated in 2003, "the problem does not end here, with the uninsured...