Bankruptcy Cases Increase as Medical Debt Goes Unpaid

Thousands of people throughout the United States are filing for bankruptcy due to mounting medical bills they cannot afford to pay.

According to an informal survey of local bankruptcy cases by the Star-Telegram and intereviews from local bankruptcy attorneys, about half of the bankruptcy cases filed in Fort Worth, Texas involve some type of medical expenses, and 10 to 20 percent of the local cases are for the most part caused medical debt.

The increase in "medical bankruptcies" has attracted the attention of Congress as they debate healthcare reform.

Perhaps a reason why medical bankruptcies continue to rise is because medical problems can affect anyone: families with children, senior citizens, recent college graduates with no health insurance, or people with a "pre-existing illness, like Tirra Jones.

When Jones quit her job at Wells Fargo Bank to open her own daycare center, she thought it would be easy to get private health insurance.  But because she has diabetes and high blood pressure, insurance companies keep denying her, claiming she has pre-existing conditions.

For now, little can be done to help Jones, who like millions of other Americans, cannot afford private health insurance or keep getting denied coverage.  Until reform is made, we will likely continue to see a rise in medical bankruptcies. 

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