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Regular people have ended up in debt just to live, and can carry a surprising amount. If we build a society where everyone carries debt, often ongoing, it's har

Regular people have ended up in debt just to live, and can carry a surprising amount. If we build a society where everyone carries debt, often ongoing, it's hardly surprising just bunging another few thousand or tens of thousands surprise medical debt at them may break them. Even if it turns out to be just a proportion of total. Your link makes no mention of mortgage or home loans. If they are included in the debts at bankruptcy, it's not in the least surprising that medical debt is "only" 12%.

rayiner 7y ago
The underlying DOJ review is addressed here: https://www.healthaffairs.org/doi/10.1377/hlthaff.25.w74 https://www.healthaffairs.org/doi/10.1377/hlthaff.25.w74 The 12-13% was unsecured debt (which would exclude mortgages, which are secured by the house). > This past year, the U.S. Department of Justice (DOJ) responded to a request by Sen. Charles Grassley (R-IA) by examining 5,203 bankruptcy cases from the files of the U.S. Trustee Program. The filings occurred between 2000 and 2002, the same time frame as the filings studied by Himmelstein and colleagues. The DOJ reported that 90 percent of filers had medical debt of less than $5,000. Of those reporting medical debts, those debts accounted for only 13 percent of total unsecured debt. The DOJ summarizes the evidence against Himmelstein and colleagues' thesis as follows: “The conclusion that almost 50 percent of consumer bankruptcies are ‘medical related’ requires a broad definition and generally is not substantiated by the official documents filed by debtors.” The study is a little old, but the “medical debt is the leading cause of bankruptcy” trope is also old.
- NeedMoreTea 7y ago
  OK, that rules out my second point then. Still the first applies. I don't find it terribly surprising that $5k could break someone's back. Plenty of folks seem to run at maximum possible credit. Others will no doubt be able to take it on the chin. Never heard of it being the leading cause of US bankruptcy btw. My distinctly European perspective is it's problematic it's a possible cause at all.
  - stjohnswarts 7y ago
    It's not the 5K that does it, it's the $500k for heart surgery that will do it every time.

rayiner 7y ago

The underlying DOJ review is addressed here: https://www.healthaffairs.org/doi/10.1377/hlthaff.25.w74 https://www.healthaffairs.org/doi/10.1377/hlthaff.25.w74 The 12-13% was unsecured debt (which would exclude mortgages, which are secured by the house). > This past year, the U.S. Department of Justice (DOJ) responded to a request by Sen. Charles Grassley (R-IA) by examining 5,203 bankruptcy cases from the files of the U.S. Trustee Program. The filings occurred between 2000 and 2002, the same time frame as the filings studied by Himmelstein and colleagues. The DOJ reported that 90 percent of filers had medical debt of less than $5,000. Of those reporting medical debts, those debts accounted for only 13 percent of total unsecured debt. The DOJ summarizes the evidence against Himmelstein and colleagues' thesis as follows: “The conclusion that almost 50 percent of consumer bankruptcies are ‘medical related’ requires a broad definition and generally is not substantiated by the official documents filed by debtors.” The study is a little old, but the “medical debt is the leading cause of bankruptcy” trope is also old.

NeedMoreTea 7y ago
OK, that rules out my second point then. Still the first applies. I don't find it terribly surprising that $5k could break someone's back. Plenty of folks seem to run at maximum possible credit. Others will no doubt be able to take it on the chin. Never heard of it being the leading cause of US bankruptcy btw. My distinctly European perspective is it's problematic it's a possible cause at all.
- stjohnswarts 7y ago
  It's not the 5K that does it, it's the $500k for heart surgery that will do it every time.