Many are facing medical debt because of unstable coverage

| Aug 31, 2020 | debt relief |

Unstable medical coverage is scary. Those with it are constantly worried about getting sick because, if they do, the amount of medical debt they will incur will financially ruin them. Those in New Jersey are not immune to these fears.

The Unstable Medical Coverage Issue

The unstable medical coverage issue is huge. Nearly 40% of all working-aged adults had unstable healthcare coverage in the first half of this year. And, of those, nearly a third have medical debt.

This is not the only issue though as 43% of working-age adults could not access stable healthcare coverage. This means that many are uninsured (12.5%) or underinsured (21%). Part of this problem may be that 10% fall into a coverage gap, where they do not qualify for Affordable Car Act subsidies or Medicaid.

Unfortunately, these issues were most extreme in vulnerable groups. This includes employees of small businesses, low-income individuals, young adults and people of color.

The Consequences

The consequence of this is medical debt. Specifically, 50% working-aged adults that were either uninsured or underinsured have medical debt. And, this is not manageable medical debt as they are struggling to pay it. They report the additional consequences of lower credit ratings, having to choose between basic necessities and lost savings.

However, those that face medical debt have options. They could have this erased through a Chapter 7 Bankruptcy, or if they have some ability to pay, restructured through a Chapter 13 Bankruptcy. While the term, bankruptcy can be scary, it can offer a fresh financial start for those that need it.