Clinical research studyMedical Bankruptcy in the United States, 2007: Results of a National Study
Section snippets
Methods
We used 3 data sources: questionnaires mailed to debtors immediately after bankruptcy filing; court records; and telephone interviews with a sub-sample of debtors.
Results
The demographic characteristics of our sample are shown in Table 1. Most debtors were middle aged, middle class (by occupational prestige),5 and had gone to college. Their modest incomes reflect the financial setbacks common in the peri-bankruptcy period. Two thirds were homeowners.
Compared with other debtors, medical debtors had slightly lower incomes, educational attainment, and occupational prestige scores; more were married and fewer were employed (reflecting more disability). Medical
Discussion
In 2007, before the current economic downturn, an American family filed for bankruptcy in the aftermath of illness every 90 seconds; three quarters of them were insured.
Since 2001, the proportion of all bankruptcies attributable to medical problems has increased by 50%. Nearly two thirds of all bankruptcies are now linked to illness.
How did medical problems propel so many middle-class, insured Americans toward bankruptcy? For 92% of the medically bankrupt, high medical bills directly
Acknowledgments
Additional support came from Harvard Law School and the American Association of Retired Persons. Professors Melissa Jacoby, Robert Lawless, Angela Littwin, Katherine Porter, John Pottow, and Teresa Sullivan played key roles in the Consumer Bankruptcy Project.
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Funding: Supported by Grant #56590 from the Robert Wood Johnson Foundation, Princeton, NJ.
Conflict of Interest: None.
Authorship: All authors had access to the data and a role in writing the manuscript.