If you’ve been feeling discouraged by your health insurance costs, from premiums to deductibles to copays, you’re certainly not alone. But here’s a compelling reason to stay covered:
People are twice as likely to file for bankruptcy if they go without health insurance or let it lapse for just two years, according to data published in the Summer 2019 issue of the American Bankruptcy Institute Law Review. You can read the details of these findings in this report from MarketWatch.
The ACA Has Dramatically Cut Personal Bankruptcy Filings
Of course, other difficulties are also likely to push people to file for bankruptcy. For example, the same extended cash flow crisis or lack of savings that cause someone to let go of their health insurance could cause someone to show up in bankruptcy court.
But the link between health crises and bankruptcy is well established, and bankruptcy filings have dropped by an astonishing 50% since the passage of the Affordable Care Act.
Health Insurance Rates May Be Stabilizing for 2020
Looking toward 2020 open enrollment, there’s mixed news about the ACA and options for insurance coverage. On one hand, Kaiser Health News has been tracking news suggesting that the days of “eye-popping-rate hikes” may be over. So the insurance marketplace shows signs of stabilizing despite the Trump Administration’s ongoing efforts to torpedo the law.
On the other hand, the number of people with health insurance coverage has dropped for the first time since the ACA took effect. In light of the ABI’s new data about health coverage and bankruptcy filings this is sobering news. Taken together, these reports are a good reminder that physical and financial well-being can hinge on having decent health insurance.
More Information
Open enrollment for 2020 health plans is just around the corner. (In most states, it starts November 1 and runs through December 15.) For information about finding affordable health insurance where you live, visit Legal Consumer’s Obamacare learning center.
If you’re thinking about bankruptcy, you can find help and information in Legal Consumer’s bankruptcy learning center.
